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: 36.7939
The EUR / USD instrument on Friday, October 12, corrected to the moving average line, which was highly expected, given the technical need for correction, a rebound from the Murray level of 6/8. At the moment, the pair has worked moving. Thus, the price rebound from the MA can provoke a resumption of the upward movement with the goal of Murray level "6/8". If traders overcome the moving average, the downward movement will continue with the goal of Murray's level of "4/8", and the trend in the instrument will change to downward. Today, the only important macroeconomic report will be the report on US retail sales. It is expected that this indicator and its derivatives will be higher than last month. This could potentially support the US currency, but technology is more important now. In general, we can also note that on Friday, we saw a correction against a correction. Thus, the key question now remains whether traders will have grounds for new purchases of the US dollar. At the same time, Trump again threatens to impose trade restrictions on China. Now, we are talking not only about the introduction of new duties totaling $ 267 billion, which will cover absolutely all imports from China, but also about other measures, however, about which ones, it has not been reported.
Nearest support levels:
S1 - 1,1536
S2 - 1,1475
S3 - 1.1414
Nearest resistance levels:
R1 - 1.1597
R2 - 1.1658
R3 - 1.1719
Trading recommendations:
The EUR / USD currency pair may complete a correction near the MA. The upward reversal of the Heikin Ashi will be a signal to open new long positions with a target of 1.1597, which has already been worked out.
It is recommended to open the sell positions after the price is fixed below the moving average line with the target Murray level "4/8" - 1.1475. In this case, bears will take hold of the instrument initiative, but they will definitely need new fundamental factors in favor of the dollar.
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