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: -61.8523
The EUR / USD instrument on Tuesday, October 30, after a rebound from Murray's level of 3/8, has so far resumed a slight downward movement. In general, the pair could not even work out a moving average line as part of the upward correction. Thus, the demand for Eurocurrency remains almost zero, and at the moment, there are no fundamental reasons for traders to change their mood. Today in the European Union, a preliminary value of GDP for the third quarter will be published. Since this is only a preliminary value, then a strong market reaction is not to be expected. Nevertheless, given the general predisposition of traders to buy the dollar, the low value of this report may cause additional pressure on the euro currency. According to experts, the value of GDP in the third quarter will drop to 1.8%. If in reality there is a lower growth rate, then the pair may continue the downward trend. But the higher than the forecast value is unlikely to cause any reaction of traders. In the States, no macroeconomic publications are planned for today. Donald Trump continues to remain silent, and it seems that the leader of the United States is preparing some kind of another "bomb." Trump is hardly satisfied with the next dollar growth, which is why he has even openly criticized the Fed and Jerome Powell, as he believes that one of the reasons for the strengthening of the American currency lies precisely in too rapid monetary tightening.
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 completed the correction. Thus, it is now recommended to trade short with the first goal of 1.1353, and in the case of overcoming this target, with the goal of Murray level "1/8" - 1.1292.
Buy-positions can be considered no earlier than fixing the price above the moving with the target of 1.1475. However, this pair will require fundamental reasons that are not currently foreseen.
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 the 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