4-hour timeframe
Technical details:
The senior linear regression channel: direction - sideways.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: -12.3255
The EUR / USD instrument on Monday, October 22, corrected to a moving average line. Now, traders will expect either a rebound from the MA or overcoming it. Given the fact that today, there is not one important planned macroeconomic report, neither in the States nor in the European Union. The main factor for determining the intraday trend will be technical. At the moment, the Heikin Ashi indicator continues to paint the bars to purple, which indicates a local upward movement. A downward reversal of this indicator will indicate the completion of an upward correction, and this scenario will be the most logical. We believe that the failure of negotiations between London and Brussels can put pressure on the euro and the pound for a long time, unless, of course, Donald Trump takes the stage with new threats to impose duties on everyone and everything. Escalating the trade conflict between China and the United States can also put pressure on the US currency. In any case, today, we are watching the moving average and how the price behaves around it. As for the fundamental component, no important macroeconomic statistics are expected until Thursday. The announcement of the results of the ECB meeting, scheduled for Thursday, may also not cause any market reaction, since no change in the ECB's monetary policy is expected.
Nearest support levels:
S1 - 1,1475
S2 - 1,1414
S3 - 1.1353
Nearest resistance levels:
R1 - 1.1536
R2 - 1.1597
R3 - 1.1658
Trading recommendations:
The EUR / USD currency pair has worked moving. The price rebound from the moving average will serve as a signal to open new short positions with a target of 1.1475. The color of 1-2 bars with Heikin Ashi indicator in blue will confirm the end of the upward correction.
Long positions will become relevant only after traders overcome the moving average line. The tendency, in this case, to change to ascending, and the first target for trading to increase will be the Murray level of "6/8" - 1.1597.
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 junior linear regression channel is the purple lines of 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.
The material has been provided by InstaForex Company - www.instaforex.com