{"id":151299,"date":"2019-07-11T06:59:31","date_gmt":"2019-07-11T10:59:31","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151299"},"modified":"2019-07-11T06:44:09","modified_gmt":"2019-07-11T10:44:09","slug":"eurusd-downwards-correction-to-take-us-to-1-1240","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/eurusd-downwards-correction-to-take-us-to-1-1240\/","title":{"rendered":"EURUSD: downwards correction to take us to 1.1240"},"content":{"rendered":"<div id=\"inves-3597940548\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 11, 2019<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By <a href=\"https:\/\/alpari.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Alpari.com<\/a><\/strong><\/p>\n<div class=\"-cms-content analytics-reviews-category-review-article__review\">\n<div>\n<p><strong><em>Previous:<\/em><\/strong><\/p>\n<p>On Wednesday the 10<sup>th<\/sup> of July, trading on the EURUSD pair closed up by 60 pips. There was a surge in volatility in the US session during Fed Chair Jerome Powell\u2019s testimony to the US House of Representatives. He hinted that the Fed could lower interest rates at the end of July due risks to the global economy. His remarks were taken to mean that the Fed is prepared to lower rates at the end of the month. After Powell\u2019s testimony, US 10-year bond yields dropped by 3.3% to 2.04%. This means that markets are bracing themselves for a rate slash, which is good for more volatile assets.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p>\n<ul>\n<li>12:30 UK: financial stability report.<\/li>\n<li>14:30 Eurozone: ECB monetary policy meeting accounts.<\/li>\n<li>15:30 Canada: new housing price index (May).<\/li>\n<li>15:30 US: initial jobless claims (5 Jul), CPI (Jun).<\/li>\n<li>17:00 US: Fed\u2019s Chair Powell testifies.<\/li>\n<li>19:15 US: Fed\u2019s Bostic speech.<\/li>\n<li>21:00 US: monthly budget statement.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/storage\/inline-images\/eur_110919_0.png\" alt=\"EURUSD H1\" data-entity-type=\"file\" data-entity-uuid=\"18c41c01-0ff6-4ed1-9144-9e789941395c\" \/><strong><em>Current situation:<\/em><\/strong><\/p>\n<p>Yesterday didn\u2019t turn out as expected. During the Fed\u2019s chair\u2019s testimony, the bull army triggered the stop levels above 1.1235. The pair recovered to 1.1260, and the dollar\u2019s decline continued to 1.1281 in today\u2019s Asian session.<\/p>\n<p>At the time of writing, the euro is trading at 1.1269. Since the upwards movement stopped at the 67<sup>th<\/sup> degree, and a bearish divergence has formed between the rate and the AO, today I\u2019m expecting to see a downwards correction to 1.1240. I\u2019ve drawn a channel with dashed lines on the chart, from which I\u2019m expecting a downwards breakout. The 45<sup>th<\/sup> degree is at 1.1230.<\/p>\n<p>Sometimes you get moments of inactivity among bears on the market, and the rate keeps climbing on the back of fundamentals, which under the current scenario would form a third higher high within the channel. This shouldn\u2019t be ruled out as a possibility.<\/p>\n<\/div>\n<\/div>\n<p><strong>By <a href=\"https:\/\/alpari.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Alpari.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Alpari.com Previous: On Wednesday the 10th of July, trading on the EURUSD pair closed up by 60 pips. There was a surge in volatility in the US session during Fed Chair Jerome Powell\u2019s testimony to the US House of Representatives. He hinted that the Fed could lower interest rates at the end of July [&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-151299","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151299","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=151299"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151299\/revisions"}],"predecessor-version":[{"id":151300,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151299\/revisions\/151300"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}