4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: -118.4254
On the second trading day, the currency pair EUR / USD continues to decline weakly and has reached a moving average line. The further dynamics of the pair now depends on whether the pair is able to overcome the moving average. Volatility in the last days on the instrument remains low. From a technical point of view, a decrease in the instrument to the area of 1.1290 - 1.1280 is very likely. In recent months, the instrument has dropped at least five times into this area. As we have repeatedly said, there are no compelling reasons for getting out of a not too accurate range of 1.1290 - 1.1500. Thus, for some time, the pair will continue to stay in this range. Today in the European Union, the publication of retail sales for December, business activity indices in services and production sectors Markit is scheduled. In the States today, there are Markit business indices and an index of business activity in the ISM services sector. The latter is the most significant indicator of today. Despite the fact that today, 6 reports of varying degrees of importance will be released immediately, we believe that fairly low volatility will continue, and traders will be able to overcome the moving average line. In any case, the Heikin Ashi indicator will show a possible reversal of the pair to the top, although it is unlikely.
Nearest support levels:
S1 - 1.1414
S2 - 1.1353
S3 - 1.1292
Nearest resistance levels:
R1 - 1.1475
R2 - 1.1536
R3 - 1.1597
Trading recommendations:
The EUR / USD currency pair continues to be adjusted. New long positions are recommended to open in case of price rebound from the moving and after turning the indicator Heikin Ashi to the top with the first goal of 1.1475.
Sell positions will become relevant no earlier than overcoming the moving average line. If the indicator Heikin Ashi continues to paint the bars blue, then the first target for the short positions will be the level of 1.1414.
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 the 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 -
www.instaforex.com