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: 162.2356
The currency pair EUR / USD on Wednesday, January 2, resumed its upward movement after the weekend Tuesday. The opening of trading immediately began with the growth of the European currency, which may have already pierced an important resistance area around the level of 1.1470. Thus, the year 2019 for the euro begins quite positively. On the last trading day of last year, no important macroeconomic information was published. Thus, traders had nothing to react to, and the growth of the European currency can be attributed to technical factors or mere chance, as well as the entry of a large player with their goals into the market. One way or another, while the euro is growing, but how long will this process go on? To date, scheduled publication of reports on business activity in the sectors of the production of the Eurozone and States. This is not to say that these are important reports, however, a certain reaction may follow. In general, the situation with the instrument remains the same as at the end of last year. The technical factor is once again the main one, as the holidays are over, but there is no fundamental information yet. Thus, based on the technology, the strengthening of the European currency may continue this week. At least, its continuation is indicated by the indicator Heikin Ashi.
Nearest support levels:
S1 - 1.1475
S2 - 1.1444
S3 - 1.1414
Nearest resistance levels:
R1 - 1.1505
R2 - 1.1536
Trading recommendations:
The EUR / USD currency pair continues its upward movement. Thus, today it is recommended to trade on the increase with the objectives of 1.1505 and 1.1536. Heikin Ashi's reversal will indicate a downward correction round.
Sell orders will become relevant not earlier than overcoming the moving average line. In this case, the initiative will pass into the hands of bears, and the targets for the downward movement will be the levels of 1.1383 and 1.1353.
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