21.01.201909:42 Forex Analysis & Reviews: EUR / USD. January 21. The trading system. "Regression Channels". The dollar strengthened slightly, volatility remains low

4-hour timeframe

Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -80.7382

The last trading day of last week ended for the EUR / USD pair with another fall. Just a week ago, there was every reason to expect further strengthening of the European currency, but now it becomes clear that without the fundamental support of the euro, it will be very difficult to show growth. Despite the fact that no super-optimistic data from the States is now also coming in, it is clear to everyone that the economy of this country remains much stronger than the EU economy. And if the UK leaves the bloc without a "deal," then a certain blow will be delivered to the EU economy. Draghi hinted at a recession in one of his last speeches. Many experts have been talking about the recession in the USA for a long time. But even in the confrontation of two recessions, there is a demand for the American currency. On Friday, only one more or less important report was published, US industrial production. The increase in December was 0.3%, which is higher than the forecast. On Monday, January 21, not a single important macroeconomic report has been scheduled either in the USA or in the Eurozone. Thus, trading today can be calm and low volatility. Friday at first glance, the pair seems to be large, in fact, it does not exceed 40 points. Just in recent days, the pair volatility has greatly decreased.

Nearest support levels:

S1 - 1.1353

S2 - 1.1292

S3 - 1.1230

Nearest resistance levels:

R1 - 1.1414

R2 - 1.1475

R3 - 1.1536

Trading recommendations:

The EUR / USD currency pair continues to move weakly down. A rebound from the level of 1.1353 warns of correction with the aim of the moving. Therefore, it is recommended to open new short positions after its completion with the goal of 1.1353.

Buy orders will become relevant for the purpose of 1.1475 if the pair overcomes the moving average line. In this case, the bulls will receive a new opportunity to form an uptrend.

In addition to the technical picture, you should also consider 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.