4-часовой таймфрейм
Technical picture of the EURUSD currency pair on the system "Regression channels" for June 29, 2017
Technical data:
The major channel of linear regression: the direction is up.
The minor channel of linear regression: the direction is sideways.
The moving average (20; flattened) is up.
СCI: 121.2121
Explanations:
The EUR/USD continued to cope with recoilless up movement amid trading on June 29 and prevail over the level of Murray "5/8". The major channel is heading higher which shows an ascending direction of the global trend movement. The minor channel moved sideways indicating a potential change in movement through the upward trend in the near-term.
As of this writing, the price is on top of the moving average and beyond Murray level "5/8".
Hence, the target for an uptrend came in at the Murray level "6/8" - 1,1475.
When the target is reached, the new goal can be found at the level of Murray "7/8" - 1,1597. The moving average is driving higher as the price go higher than the MA and an actual upward movement is expected eventually.
Heiken Ashi generated purple bars in the last candlesticks which point out an ascending trend that could maintain open long positions, therefore, prior the downward movement of the indicator indicating the onset of downward correction,
Sell orders can be made only underneath the line of the moving average followed by the reversal of any descending channel.
The Commodity Channel Index (CCI) settled around the 100 level which shows for a possible weak overbought pair of euro and dollar. Moreover, a downward pullback is mentioned to forecasts.
Nearest support levels:
S1 - 1.153
S2 - 1.1230 S3 - 1.1108
Nearest resistance levels:
R1 = 1.1475
R2 = 1.1597
R3 = 1.1719
Trading recommendations:
Dealing with the EURUSD currency pair, we further believe to consider long positions and the target is at 1.1475. The next goal hit the 1.1597 mark.
It is suggested for the stop-loss placed beneath the moving average and when it rises up then stop level will be reached. Passing through the points 70-90 would transfer the stop-loss to the black.
In order to manually reduce a buy order, you can color 1-2 bar in blue using the Heiken Ashi indicator or when the price bounced back from the initial target.
Take Profit orders can be fixed slightly under the target regions. Sell order is ruled out.
Market participants should also reflect on fundamental data and release period.
Explanations for illustrations:
The main channel of linear regression is the blue lines of unidirectional motion.
The lowest linear regression channel is the violet lines of unidirectional motion.
CCI - the blue line in the indicator window.
Moving average (20, smoothed) - the blue line on the price chart.
Levels of Murray - multicolored horizontal stripes. Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com