4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: -9.6839
The currency pair EUR / USD on Thursday, December 13, once again returned to the moving average line and overcame it. Yesterday, the Eurocurrency was supported by the information on a no-confidence vote of 48 members of the Conservative Party, Theresa May. Now, there will be an internal party vote for Theresa May's resignation, which is completely unknown how this will end. Oddly enough, this information supported both the euro and the pound. Hence the conclusion, a positive future for the UK and national currency traders do not associate with the current prime minister. Thus, if the party decides to dismiss May, this may again support the Eurocurrency. To date, the eurozone is scheduled to publish a key and deposit rate of the ECB, as well as the ECB press conference on monetary policy. It is expected that the European regulator will leave key rates unchanged and announce the reduction of the quantitative incentive program. This information may once again help the euro strengthen a little. Also scheduled for today is the EU Brexit summit. Therefore, any information from this event will potentially have an impact on the euro currency and the pound sterling. From a technical point of view, the Eurocurrency continues to throw from side to side. A pronounced trend is missing. A pair very often changes the direction of movement between the levels of 1.1414 and 1.1292.
Nearest support levels:
S1 - 1.1230
S2 - 1.1169
S3 - 1.1108
Nearest resistance levels:
R1 - 1.292
R2 - 1.1353
R3 - 1.1414
Trading recommendations:
The EUR / USD currency pair has fixed above the MA. Therefore, at the moment, long positions with a target of 1.1414 are relevant. Around this level, a downward reversal may occur, plus one should pay close attention today to fundamental events.
It is recommended to open sell orders after re-fixing the price below the moving average. In this case, the pair will have a chance to decline to the level of 1.1292 and small shorts will become relevant.
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