4 hour timeframe
Technical details:
Senior linear regression channel: direction - down.
The younger linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -46.5670
The currency pair EUR / USD on Wednesday , November 14, continues to be adjusted for the purpose of a moving average line. Today, in terms of macroeconomic events, traders will have something to turn their attention to. First, it will be published preliminary data on the eurozone GDP for the third quarter and industrial production for September. A little later, the report on inflation in America will be released and it will be the one that will have the highest value. It is expected that in monthly terms, the consumer price index will add 0.3%, and in annual terms - 2.5%. These values are higher than the previous month. Thus, while inflation has not gone beyond the upper limit of the target zone (3%), its acceleration is considered as a positive point.
Proceeding from this, if the real value of inflation is not worse than the forecast, then the US dollar in the second half of the day may receive support which may be enough to resume a downtrend. From a technical point of view, the correction is rather weak and the trend remains strongly pronounced downward. All trend indicators are down. Thus, it is recommended to wait for the Heiken-Ashi indicator to turn down to resume trading for a fall. Also, an information was received that the EU and the United Kingdom agreed on the text of the Brexit treaty at a technical level. However, now the word for the British Parliament, which must approve it.
Nearest support levels:
S1 - 1,1292
S2 - 1.1230
S3 - 1.1169
Nearest resistance levels:
R1 - 1.1353
R2 - 1.1414
R3 - 1.1475
Trading recommendations:
The EUR / USD currency pair continues to be adjusted. A reversal of the Heiken Ashi indicator down will serve as a signal to open new sell-positions with the target of 1.1230 which has already been tested. The price should be located below the MA.
Buy positions are recommended to be opened after fixing the price above the moving average line with the target of 1.1414. New data on the progress in the negotiations on Brexit can support the European currency. 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 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com