{"id":121113,"date":"2018-02-08T07:30:23","date_gmt":"2018-02-08T12:30:23","guid":{"rendered":"http:\/\/countingpips.com\/?p=121113"},"modified":"2018-06-01T15:43:44","modified_gmt":"2018-06-01T15:43:44","slug":"eurusd-euro-slumps-to-reversal-zone-at-112-135-degrees","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/02\/eurusd-euro-slumps-to-reversal-zone-at-112-135-degrees\/","title":{"rendered":"EURUSD: euro slumps to reversal zone at 112 \u2013 135 degrees"},"content":{"rendered":"<div id=\"inves-3959163528\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">February 8, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong>Previous:<\/strong><\/p>\n<p>On Wednesday the 7<sup>th<\/sup>\u00a0of February, trading on the euro closed down. The EURUSD pair fell from 1.2405 to 1.2246 (-159 pips). The main driver behind the dollar\u2019s surge was the rise in US bond yields coupled with the extension of US government funding until the 23<sup>rd<\/sup>\u00a0of March. This downwards dynamic on the EURUSD was enough to sink the EURGBP cross as well.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 Germany: trade balance (Dec).<\/li>\n<li>12:00 Eurozone: economic bulletin.<\/li>\n<li>15:00 UK: BoE interest rate decision, asset purchase facility, BoE quarterly inflation report.<\/li>\n<li>15:30 UK: BoE Governor Mark Carney\u2019s speech.<\/li>\n<li>16:30 USA: initial jobless claims (2 Feb).<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2018\/02\/eur_080218.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>My prediction of a reversal model failed. The news surrounding the dollar as well as a renewed decline on the euro crosses combined to block buyers from opening new long positions. The bears ended up pushing the price into the reversal zone between the 112<sup>th<\/sup>\u00a0and 135<sup>th<\/sup>\u00a0degrees. The euro\u2019s decline subsided as it reached the D3 MA line.<\/p>\n<p>Yesterday, sellers broke the 1.2295 support. The technical picture on the daily timeframe is looking bearish, but the 1-hour and 4-hour timeframes show the euro recovering by the end of the week.<\/p><div id=\"inves-4182743257\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Considering that yesterday\u2019s drop came to around 150 pips, a good initial target for buyers would be to return to the trend line at 1.2358 (90 degrees). If the daily candlestick closes above 1.23, this would create a buy signal. If the hour closes below 1.2238, however, this will scupper any growth prospects.<\/p>\n<p>I\u2019m relying on my forecast to come good before the week is out.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: euro slumps to reversal zone at 112 \u2013 135 degrees<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Wednesday the 7th\u00a0of February, trading on the euro closed down. The EURUSD pair fell from 1.2405 to 1.2246 (-159 pips). The main driver behind the dollar\u2019s surge was the rise in US bond yields coupled with the extension of US government funding until the 23rd\u00a0of March. This downwards dynamic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-121113","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/121113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=121113"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/121113\/revisions"}],"predecessor-version":[{"id":121115,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/121113\/revisions\/121115"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=121113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=121113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=121113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}