4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
Junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 83.7682
The currency pair EUR / USD on Thursday, November 29, fixed above the moving average line. Yesterday's speech by Fed Chairman Jerome Powell could not have caused the collapse of the US currency, since he did not report anything disappointing to the markets. Powell said that the current key rate is slightly below neutral and is still low. That is, the current level of interest cannot be called either stimulating or restrictive. Powell also noted that the future course of monetary policy will depend on macroeconomic indicators. Then the head of the Bank of England Mark Carney delivered a speech, who said that Brexit could deal a serious blow to the UK economy and to serious losses in the GDP indicator. Most likely, Carney was referring to the "disordered" Brexit. These data can be regarded as dangerous for the euro and the pound, but both currencies were shaking yesterday. It is on this basis that we believe that the first signs that the "dollar" trend is nearing its end are beginning to appear. Nevertheless, despite the strength of the American economy, especially in comparison with the European one and against the background of all the problems of Great Britain in recent years, the US dollar cannot rise constantly. Perhaps the moment has come when the mood in the foreign exchange market will change.
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 fixed above the MA. Therefore, at the moment, it is recommended to trade on the increase with the objectives of 1.1414 and 1.1475. Fundamental grounds for the growth of the euro is still a bit, so the upward movement may be short-lived.
Short positions will again become relevant after the price is fixed back below the moving average line and, given the nature of the fundamental data, this is a more likely scenario, despite the strong overbought dollar. The goal in this case will be 1.1292.
In addition to the technical picture, you should also consider 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 younger 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