{"id":132779,"date":"2018-08-29T07:46:29","date_gmt":"2018-08-29T11:46:29","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=132779"},"modified":"2018-08-29T06:49:39","modified_gmt":"2018-08-29T10:49:39","slug":"eurusd-bulls-quickly-recovering-their-losses-on-the-back-of-an-increased-appetite-for-risk","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/eurusd-bulls-quickly-recovering-their-losses-on-the-back-of-an-increased-appetite-for-risk\/","title":{"rendered":"EURUSD: bulls quickly recovering their losses on the back of an increased appetite for risk"},"content":{"rendered":"<div id=\"inves-1781797229\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 29, 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><em>Previous:<\/em><\/strong><\/p>\n<p>On Tuesday the 27<sup>th<\/sup>\u00a0of August, trading on the EURUSD pair closed up. Volatility was high across all of yesterday\u2019s trading sessions. In Asia, the bears tried to reverse the upwards trend, but ran out of steam after a couple of hours. The pair then recovered from 1.1663 to 1.1700. The euro then rose further to 1.1734 on the back of a broadly weaker dollar and rising crosses.<\/p>\n<p>A breakthrough in NAFTA trade negotiations between the US and Mexico increased demand for risky assets, and given that the EURUSD pair is in an uptrend on the hourly timeframe, along with rising crosses, the bulls destroyed everything in their path.<\/p>\n<p>The euro\u2019s rise was halted by the release of US data along with a rise in US10Y bond yields. The dollar was given a boost after a strong US consumer confidence report. The index for August came out at 133.4 (forecast: 126.7, previous reading revised from 127.4 to 127.9). This triggered a correction on the euro to 1.1691, after which it started trading sideways within a narrow range.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:00 Germany: Gfk consumer confidence survey (Sep).<\/li>\n<li>09:45 France: consumer spending (Jul), GDP (Q2).<\/li>\n<li>11:00 Switzerland: ZEW survey \u2013 expectations (Aug).<\/li>\n<li>15:30 Canada: current account (Q2).<\/li>\n<li>15:30 US: GDP (Q2).<\/li>\n<li>17:00 US: pending home sales (Jul).<\/li>\n<li>17:30 US: EIA crude oil stocks change (24 Aug).<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/538_5b86411aa6b09.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart.<\/p><div id=\"inves-3288559261\" 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><strong><em>Current situation:<\/em><\/strong><\/p>\n<p>The demand for risky assets and the euro on the crosses overwhelmed the bearish divergences and the double top. My prediction of a rebound from the upper boundary of the daily channel did not come to pass. It\u2019s good that I decided to reduce my risk level by half (to 0.5%) on my counter-trend trade.<\/p>\n<p>I\u2019ve highlighted 2 areas on today\u2019s chart, which show similar patterns of a correction followed by growth. So long as sellers don\u2019t manage to break through the low at 1.1633 (from the 27<sup>th<\/sup>\u00a0of August), buyers have the potential to bring the rate back up to 1.1734.<\/p>\n<p>Hourly cycles and patterns point towards weak growth today, followed by a decline tomorrow. In light of this, my forecast for today has the euro rising to 1.1720 during the European session, followed by a drop to 1.1696 during the US session.<\/p>\n<p>Today, traders will turn their attention towards US data; namely GDP figures for Q2 and the change in the number of pending home sales in July.<\/p>\n<p>I don\u2019t want to buy the euro at this stage. When the single currency returns to around 1.1720 \u2013 1.1734, it may be worth risking shorting the euro with a target of 1.1600.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: bulls quickly recovering their losses on the back of an increased appetite for risk<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Tuesday the 27th\u00a0of August, trading on the EURUSD pair closed up. Volatility was high across all of yesterday\u2019s trading sessions. In Asia, the bears tried to reverse the upwards trend, but ran out of steam after a couple of hours. The pair then recovered from 1.1663 to 1.1700. The [&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-132779","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132779","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=132779"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132779\/revisions"}],"predecessor-version":[{"id":132780,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132779\/revisions\/132780"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=132779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=132779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=132779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}