4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - sideways.
CCI: -16.3885
The currency pair EUR / USD on Monday, December 24, is trading slightly below the moving average line after the Friday's quite strong correction. What is expected traders in the pre-New Year week? In the first three days of the week, there will be no important macroeconomic publications. Tuesday is a day off in honor of Christmas. Thus, these days, it is possible to reduce the volatility of the instrument, and illogical movements in different directions, associated with the closing of positions by traders not on the basis of fundamental or technical factors, but on the basis of the desire to leave the market on the eve of holidays and take profits. Thus, in the coming days, it will be extremely difficult to predict the movement of the pair. From a technical point of view, the instrument has fixed below the moving average line, therefore, it is possible to continue the downward movement. However, the pair does not interfere with anything today to consolidate back above the moving. In general, market participants can be advised to trade extremely cautiously in the coming days. From fundamental events, only data on the speeches of world leaders, for example, Trump, can be made available to traders.
Nearest support levels:
S1 - 1.1383
S2 - 1.1353
S3 - 1.1322
Nearest resistance levels:
R1 - 1,1414
R2 - 1.1444
R3 - 1.1475
Trading recommendations:
The currency pair EUR / USD continues to move down. Thus, current sell orders with targets 1.1353 and 1.1322 are relevant. However, the opening of any position is now associated with increased risks.
It is recommended to open buy positions not earlier than reversing the price above the moving with targets 1.1414 and 1.1444 and also small lots. In this case, the pair may be in an upward movement for some time, but now there are no special reasons for the uptrend.
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