4-hour timeframe
Technical data:
The senior channel of linear regression: direction - sideways.
The younger channel of linear regression: the direction is up.
The moving average (20; flattened) is up.
СCI: 38.8128
The currency pair EUR / USD at the beginning of the new trading week continues to be adjusted, as indicated by the blue bars of the indicator Heikin Ashi. The purpose of correction is the moving average line. The rebound of the price from the moving-out will provoke the resumption of the upward movement, and the upward trend will be preserved. On Monday, September 24, no important macroeconomic reports are expected in either the States or the European Union. Thus, traders will have to rely on making trade decisions solely on technology. Volatility today can be lowered. Also, you should continue to monitor any reports from US President Donald Trump. His recent comments on the introduction of new trade duties for an unprecedented amount of $ 267 billion, which together with the previous sanctions will cover all imports from China, remained without reaction. This suggests that the market is tired of news on this topic and does not look so rosy in the future, expecting a serious positive effect for the US economy. Moreover, China does not go backward and does not concede to Trump in anything. From this point of view, the prospects for the US dollar now do not look as rosy as they did a month or two ago. Moreover, Trump seems to have taken up seriously the question of the high cost of the US dollar. Let's see what decision on the rate the Fed will take this week.
Nearest support levels:
S1 = 1.1719
S2 = 1.1658
S3 - 1,1597
Nearest resistance levels:
R1 = 1.1780
R2 - 1.1841
Trading recommendations:
The EUR / USD currency pair is corrected. The color of 1-2 bars by the indicator of Heikin Ashi in purple will signal about the possibility of opening new purchase orders with the target of 1.1780. The rebound of the price from the removals will also indicate the resumption of the upward movement.
Sell-positions can be opened after fixing the price below the removals. In this case, for some time, the trend for the instrument will change to a downward trend, and the first target for short positions will be 1.1658.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper channel of linear regression is the blue lines of unidirectional motion.
The lowest linear regression channel is the violet lines of unidirectional motion.
CCI - the blue line in the indicator window.
Moving average (20; smoothed) - the blue line on the price chart.
Levels of Murray - multi-colored horizontal stripes.
Heikin Ashi is an indicator that color bars in blue or purple.
The material has been provided by InstaForex Company -
www.instaforex.com