EUR / USD. February 14. The trading system. "Regression Channels". Hope for euro - on weak retail sales in the US - ConsultFX

EUR / USD. February 14. The trading system. "Regression Channels". Hope for euro - on weak retail sales in the US

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -86.2407

After the publication of an absolutely disastrous indicator of industrial production in the eurozone and quite good for inflation in the United States, the Euro currency again rushed down. Yesterday's day for the EUR / USD pair ended with a strong fall and updating of the previous minimum. However, despite the fact that, from the technical side, the downward movement may well continue, we believe that before a confident breakthrough of the area of 1.1270–1.1290, the pair may at any time begin an upward movement to 1.1500. At the moment, the chances of overcoming this zone are 50/50. We believe that traders will make another attempt to start moving up and overcome the moving, if it ends unsuccessfully, the Euro currency may fall down. On Thursday, February 14, in the eurozone, the publication of the preliminary value of GDP for the fourth quarter is scheduled. Projections indicate a value of 1.2% y / y. In the States today, there will be reports on retail sales for December. If the nature of this news is the same as yesterday, then it will be difficult for the euro to avoid a negative fate. From a technical point of view, Heikin Ashi indicator may turn up in the near future, which will be a signal for a new round of upward correction.

Nearest support levels:

S1 - 1.1230

S2 - 1.1169

S3 - 1.1108

Nearest resistance levels:


R2 - 1.1353

R3 - 1.1414

Trading recommendations:

The EUR / USD currency pair resumed its downward movement, but perhaps not for long. Heikin Ashi's color indicator 1-2 bars in purple color will serve as a new signal to reduce the short positions opened earlier with the target of 1.1230.

Buy positions are recommended to be considered not earlier if the bulls overcome the moving average line with the first target of 1.1414. Today's reports in the EU and the US can influence the technical picture of the tool.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations

The senior linear regression channel is blue lines of the unidirectional movement.

The younger linear regression channel is the purple lines of the unidirectional movement.

CCI - blue line in the indicator window.

The moving average (20; smoothed) is the blue line on the price chart.

Murray levels - multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company -