4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - down.
CCI: -125.7723
The currency pair EUR / USD on Wednesday, January 16, is below Murray's level of "3/8" - 1.1414 and is trying to recover from yesterday's fall. Unlike the pound sterling, which had been growing steadily before a key event for at least this month, the euro currency was in a downward trend throughout the day. Closer to the night, when it became known about the failure of the Theresa May initiative in the British Parliament, the situation with Euro currency, absolutely logical, has not changed. Taking into account the fact that new early parliamentary elections can now take place in Britain, and Theresa May will resign with a high degree of probability, respectively, new negotiations will have to be held with the European Union, there are few reasons for the euro to grow. As we have said, for Europe Brexit is not as important as for the Kingdom. Therefore, the reaction from traders throughout the negotiation process and the key points of the procedure was not so much. Therefore, the prospects of Eurocurrencies do not look hopeless. In his speech yesterday, Mario Draghi noted that the growth rate of the eurozone economy is lower than expected by the regulator. Thus, the ECB once again showed its unwillingness to tighten monetary policy and recognized the need to further stimulate the economy. And this is the second negative factor for the euro, which can put pressure on the euro during today.
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 currency pair EUR / USD continues to move down. Therefore, it is still recommended to trade short positions with the first goal of 1.1353. The Heikin Ashi indicator has not yet turned up, therefore there are no reasons to expect an upward correction at the moment.
Long positions can be considered no earlier than fixing the price above the moving with the target of 1.1536. In the current conditions in the next two days, this will require fundamental reasons, which are not yet available.
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