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: -66.6325
The EUR / USD instrument on Wednesday, October 24, resumed its downward movement after a minimal correction, in which the pair could not even work out a moving average line. The Heikin Ashi indicator has turned down, which signals the completion of the correction. Important macroeconomic events in the world yesterday were not recorded. Thus, the rather low volatility of the instrument fully reflects the fundamental picture of the last days. Today will be the third in a row in a series of days absolutely empty in terms of macroeconomic events. The news calendar contains only preliminary values of the index of business activity in the fields of services and production of Markit. It is unlikely that traders will at least somehow react to these reports. In the United States, Bullard and Bostic representatives are scheduled for the evening, however, these events may cause market participants to react with minimal probability. New posts on the topic Brexit in the last 24 hours have also been reported. Thus, the downward trend in the instrument remains, and the main factor for determining the intraday trend remains technical.
Nearest support levels:
S1 - 1,1414
S2 - 1.1353
S3 - 1,1292
Nearest resistance levels:
R1 - 1.1475
R2 - 1.1536
R3 - 1.1597
Trading recommendations:
The EUR / USD currency pair has resumed its downward movement. Based on this, it is now recommended to remain in short positions (or open new ones, since Heikin Ashi has just turned down) with a target of 1.1414. A reversal of the Heikin Ashi indicator to the top will indicate a new round of upward correction.
Buy positions are recommended to be considered 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, but this will require signals, which we are unlikely to receive today.
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