4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: -2.2165
The EUR / USD currency pair on Wednesday, December 26, started trading slightly above the moving average line, but could not immediately overcome the Murray level of "6/8" - 1.1414. Apart from the fact that the market is now extremely sensitive, that is, it can react very strongly to any news, there are very few fundamental events themselves. Thus, the option with a flat up until January 2-3 is very likely. If the pair manages to consolidate above Murray's level of 6/8, the upward movement can continue today. From a fundamental point of view, there is absolutely nothing to note now. The calendar of macroeconomic events for today is absolutely empty. Tomorrow is about the same picture. Thus, it is hoped only for the receipt of any information from Donald Trump or the leaders of the European Union. In this case, quite strong movements are possible, as the market is sensitive during the holidays. Even if there is no frank flat with a drop in volatility, it is unlikely that the instrument will be able to form a trend in the coming week. Thus, from the current position it is even more preferable to move down with a preliminary consolidation below the moving average.
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 EUR / USD currency pair maintains upward prospects. If the bulls manage to overcome the level of 1.1414, then it will be possible to open long positions with the first target of 1.1444, and then to the level of 1.1475.
Orders for sale can be considered no earlier than fixing the price below the moving average. In this case, the target for shorts will be the level of 1.1353, but in any case it is recommended to open positions in small lots.
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