{"id":134849,"date":"2018-10-03T07:15:44","date_gmt":"2018-10-03T11:15:44","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=134849"},"modified":"2018-10-03T06:26:45","modified_gmt":"2018-10-03T10:26:45","slug":"eurusd-the-pair-has-gained-a-foothold-above-the-balance-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/10\/eurusd-the-pair-has-gained-a-foothold-above-the-balance-line\/","title":{"rendered":"EURUSD: the pair has gained a foothold above the balance line"},"content":{"rendered":"<div id=\"inves-2816758218\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">October 3, 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 2<sup>nd<\/sup>\u00a0of October, trading on the EURUSD pair closed down. In the US session, buyers recovered a big portion of the losses they incurred during trading in Europe. The euro is under pressure from the situation in Italy, where the government has approved a budget deficit of 2.4% for 2019. Italian Deputy Prime Minister Luigi Di Maio gave markets some respite after saying that the government has no plans to leave the EU.<\/p>\n<p>Fed Chair Jerome Powell\u2019s speech didn\u2019t didn\u2019t spark any serious volatility. The euro recovered to 1.1570, after which the EURUSD pair went into a correctional phase, where it has been for the last 9 hours.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:15 Spain: Markit services PMI (Sep).<\/li>\n<li>10:45 Italy: Markit services PMI (Sep).<\/li>\n<li>10:50 France: Markit services PMI (Sep).<\/li>\n<li>10:55 Germany: Markit services PMI (Sep).<\/li>\n<li>11:00 Eurozone: Markit services PMI (Sep).<\/li>\n<li>11:30 UK: Markit services PMI (Sep).<\/li>\n<li>12:00 Eurozone: retail sales (Aug).<\/li>\n<li>15:00 US: ADP employment change (Sep).<\/li>\n<li>16:45 US: Markit services PMI (Sep).<\/li>\n<li>17:00 US: ISM non-manufacturing PMI (Sep)<\/li>\n<li>17:30 US: EIA crude oil stocks change (28 Sep).<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/584_5bb46811bd737.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart.<\/p>\n<p><strong><em>Current situation:<\/em><\/strong><\/p><div id=\"inves-329540176\" 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>The fundamentals overpowered technical factors, which took me by surprise. Nevertheless, the bulls were able to recover their losses in the US, and further strengthened their positions in Asia.<\/p>\n<p>The euro surged on the news that Italy plans to reduce its budget deficit to 2% in 2021. The news isn\u2019t that great, because it\u2019s still 2018. It\u2019s easy to make promises now, and not fulfil them later.<\/p>\n<p>From the 1.1505 low, the euro recovered by 67 degrees. From a technical standpoint, there\u2019s nothing stopping this correction continuing to 1.1613 (90 degrees). There\u2019s a resistance at this level, which is drawn from the highs of 1.1630 and 1.1625.<\/p>\n<p>If today doesn\u2019t give us any negative news about Brexit or the Italian budget, then we could see quotes rise to 1.1650 ahead of Friday\u2019s payrolls.<\/p>\n<p>From today\u2019s US data, it\u2019s worth paying attention to the ADP employment report, and the PMI data from Markit and ISM. The former is important for traders in order to revise their positions ahead of the NFP report. The PMI reports are important for the Federal Reserve.<\/p>\n<p>I wrote yesterday that the longer prices move against the cycles, the bigger the rebound will be. Our pair could make is as far as the 112<sup>th<\/sup>\u00a0degree at 1.1639 (today\u2019s limit) unimpeded. A breakout of 1.1552 (meaning a breakout of the local upwards channel) will, conversely, increase pressure on buyers. The pair is trading above the LB balance line, which is therefore now providing support to buyers.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: the pair has gained a foothold above the balance line<\/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 2nd\u00a0of October, trading on the EURUSD pair closed down. In the US session, buyers recovered a big portion of the losses they incurred during trading in Europe. The euro is under pressure from the situation in Italy, where the government has approved a budget deficit of 2.4% [&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-134849","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/134849","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=134849"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/134849\/revisions"}],"predecessor-version":[{"id":134850,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/134849\/revisions\/134850"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=134849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=134849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=134849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}