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Trading Conditions
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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: -106.9837
On the last trading day of the week, the EUR / USD currency pair continues its steady downward movement. Yesterday's attempt to start an upward correction ended without starting. The pair confidently overcame the Murray level of "2/8" - 1.1353. Thus, we still expect a decline to the Murray level of "1/8" - 1.1292, near which we will expect a turn up. The Heikin Ashi indicator will signal the start of an upward movement. Of course, the pair can continue to move below Murray's level of 1/8. But, from our point of view, this will require strong fundamental reasons. Yesterday, no important economic data was received from the EU and the States. There are also no important macroeconomic reports scheduled for February 8. Thus, the continuation of low-volatility tool reduction today is a very likely option. The Bank of England meeting and its results had no impact on the EUR / USD currency pair. In general, even with the completion of the Fed rate increase policy (1 or 2 increases may still be), the US economy still looks stronger and the dollar is more attractive for investment. Thus, in the long run, we still expect the pair to decline further.
Nearest support levels:
S1 - 1.1292
S2 - 1.1230
S3 - 1.1169
Nearest resistance levels:
R1 - 1.1353
R2 - 1.1414
R3 - 1.1475
Trading recommendations:
The currency pair EUR / USD continues to move down. Therefore now short positions with the purpose of 1.1292 are still actual. As before, the manual reduction of the short positions will be possible when the Heikin Ashi indicator turns up.
Long positions will become relevant not earlier than traders overcome the moving average. In this case, we will expect an upward movement with the first target of 1.1475.
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.
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