{"id":138773,"date":"2018-12-12T07:45:24","date_gmt":"2018-12-12T12:45:24","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=138773"},"modified":"2018-12-12T06:56:12","modified_gmt":"2018-12-12T11:56:12","slug":"eurusd-rebound-from-the-trend-line-likely","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/12\/eurusd-rebound-from-the-trend-line-likely\/","title":{"rendered":"EURUSD: rebound from the trend line likely"},"content":{"rendered":"<div id=\"inves-2466173310\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">December 12, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By <a href=\"https:\/\/alpari.com\/en\/analytics\/analysts\/anthony\/\">Matthew Anthony, Alpari<\/a><\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong><em>Previous:<\/em><\/strong><\/p>\n<p>On Tuesday the 11<sup>th<\/sup> of December, trading on the EURUSD pair closed down. The single currency\u2019s slide against the greenback was facilitated by a broadly stronger dollar, a statement from Italian Finance Minister Giovanni Tria, and a drop in German 10-year bond yields ahead of the ECB meeting.<\/p>\n<p>The exchange rate dropped to 1.1306. German bond yields fell due to a selloff of Italian and French bonds. Giovanni Tria announced that the government isn\u2019t planning any major changes to its budget. French President Emmanuel Macron tried to quell the protests in Paris with wage increases and tax cuts. The GBPUSD pair dropped amid uncertainty surrounding Brexit.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>13:00 Eurozone: industrial production (Oct).<\/li>\n<li>16:30 Canada: capacity utilisation (Q3).<\/li>\n<li>16:30 US: CPI (Nov).<\/li>\n<li>18:30 US: EIA crude oil stocks change (7 Dec).<\/li>\n<li>22:00 US: monthly budget statement (Nov).<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/657_5c10bf29e32fd.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. MA channel on the EURUSD hourly chart.<\/p>\n<p><strong><em>Current situation:<\/em><\/strong><\/p><div id=\"inves-3219050469\" 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>On the back of a rise in European stocks, euro bulls managed to test the 1.14 mark around the 45<sup>th<\/sup> degree. From there, the rate plummeted 94 pips. I\u2019ve listed the reasons for this drop above. The pair has exited the upwards channel (dashed line), and is currently trading beneath it.<\/p>\n<p>In my forecast, I expect to see the pair recover to the LB balance line and the 45<sup>th<\/sup> degree. Since there\u2019s a slight divergence between the indicators on the H1 and H4 timeframes, I\u2019m expecting an initial drop to 1.1317 followed by a rise to 1.1356. As I\u2019ve mentioned above, there\u2019s a multitude of levels here from various methods of technical analysis. I can\u2019t see the pair rising any further than 1.1380.<\/p>\n<p>External factors for the euro remain negative. Taking into account that the ECB is holding a meeting on Thursday, it would be nice to see a pullback to 1.1360. Trading around the balance line would suit both the bulls and the bears. If 1.1300 doesn\u2019t hold up, we\u2019ll get a drop to 1.1248 (D3).<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: rebound from the trend line likely<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Matthew Anthony, Alpari Previous: On Tuesday the 11th of December, trading on the EURUSD pair closed down. The single currency\u2019s slide against the greenback was facilitated by a broadly stronger dollar, a statement from Italian Finance Minister Giovanni Tria, and a drop in German 10-year bond yields ahead of the ECB meeting. The exchange [&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-138773","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138773","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=138773"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138773\/revisions"}],"predecessor-version":[{"id":138774,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/138773\/revisions\/138774"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=138773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=138773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=138773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}