22.01.201909:22 Forex Analysis & Reviews: EUR / USD. January 22. The trading system. "Regression Channels". Volatility dropped to lows

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: -149.2824

On Tuesday, January 22, the currency pair EUR / USD continues a weak downward movement amid the complete absence of any important macroeconomic information from the European Union or the States. In America now everything is simple: "Shutdown" continues, Trump is trying to knock out money to build a wall on the border with Mexico, macroeconomic reports are not published. The European Union is also in a certain hibernation, the main political and economic events take place in the UK, and the whole world is now watching this country. This explains the low volatility in recent days for the analyzed instrument. To date, no important publications have been scheduled in the European Union again. Thus, we should not expect an increase in volatility today. Information from the British Parliament now also has no effect on the EUR / USD pair. Based on this, traders can only rely on technical factors. A certain part of traders is now completely out of the market, which can be seen in the trading volumes. The Heikin Ashi indicator often signals a possible beginning of a correction, which ultimately does not start. In such conditions, the best option would be to remain outside the market for some time, simply waiting for the restoration of the previous levels of volatility.

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 currency pair EUR / USD continues the weakest movement down. A rebound from the level of 1.1353 warns of a possible correction for the purpose of the MA. Therefore, it is recommended to open new short positions after its completion or in the case of overcoming the level of 1.1353, but not forgetting that the volatility is now extremely low.

Buy orders will become relevant for the purpose of 1.1475, if the bulls manage to overcome the moving average line. In this case, the tool initiative will go into the hands of the bulls for a while.

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.