4-hour timeframe
Technical details:
The senior linear regression channel: direction - sideways.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -126.7267
The EUR / USD instrument on Thursday, October 25th, continues its downward movement. Today in the European Union, the results of the ECB meeting will be announced. The key rate is likely to remain unchanged, since there are no grounds for tightening monetary policy. Thus, the key event of the day will be a press conference with representatives of the ECB. However, this hope is small. It is unlikely that we will hear new messages from members of the monetary committee about a possible tightening of monetary policy. Most likely, at the press conference, there will be general phrases about economic growth, wage levels and, perhaps, even Brexit. Thus, this event should not be overlooked, but there is no need to have hopes for strong and important information either. No other macroeconomic events in Europe are planned for today. In the States, a report on the change in the volume of orders for durable goods in September will be released today. It is expected that this figure will decrease by 0.9%. This is a much weaker value than a month earlier. Thus, the Eurocurrency will have chances today for a small increase. From a technical point of view, the pair overcame the level of Murray "3/8" - 1.1414, but the last bars indicator Heikin Ashi colored in purple. Thus, the technical picture also allows for correction today.
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 EUR / USD currency pair has begun a very weak correction so far, which can be supported by the news today. Thus, in order to open new short positions with the target of 1.1353, a signal on the completion of the correction is needed.
Buy-positions will become relevant no earlier than fixing the price above the moving with the target of 1.1536. In this case, the trend in the instrument will change to ascending. Today's news can support the Eurocurrency.
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 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