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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) - sideways.
CCI: 24.9307
The second trading day of the week ended for the EUR / USD pair with an upward movement to the moving average line. Thus, as we expected, the pair failed to overcome the strong support area of 1.1270 - 1.1290. The rebound from this area has been completed, and now it is quite possible to move upwards with a target near the level of 1.1500. As before, there are no prerequisites for further downward movement. Yesterday, there was not a single important macroeconomic publication, there are also no new important messages from the States or the EU. Therefore, traders continue to trade a pair inside the channel of 1.1290 - 1.1500 with dimly expressed boundaries. Today in the eurozone, report for December on industrial production will be published. It is expected that this figure will decrease by 3.2%. This and similar reports may cause new sales of the euro, which does not correlate with the technical picture of the situation. Nevertheless, Europe continues to disappoint with its economic publications. In the States today, the consumer price index will be released in January, and this figure is also expected with a serious decline, namely, a slowdown to 1.5% y / y. Thus, American news may disappoint traders today. From a technical point of view, a rebound in the price of MA can trigger a resumption of a downward movement or at least a small pullback.
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 EUR / USD currency pair has adjusted to the moving average line. A rebound from the MA will serve as a signal for the opening of new short positions with a target of 1.1292. The color of 1-2 bars in blue will confirm the turn of the downward movement.
Buy positions are recommended to open no earlier than the Bulls overcome the moving average line with the first target of 1.1414. This is a more expected scenario for us.
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.
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