4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 121.5528
On the second trading day of the week, the EUR / USD currency pair continues its uptrend, as shown by the indicator Heikin Ashi. In his speech at the European Parliament, the head of the ECB, Mario Draghi, once again expressed his concern that in the past few months macroeconomic indicators were weaker than forecasts. Draghi also said that the deterioration of the dynamics is associated with the threat of protectionist policies, as well as geopolitical risks. In addition, the head of the ECB noted the decline in the role of the euro currency in world reserves and debt markets. Thus, such a statement cannot be called optimistic; nevertheless, the euro continues to grow, albeit at a slower pace. We once again note that the level of 1.1292 and the area around it is the strongest support for the currency pair. Thus, in order to break through and continue the downward trend, very strong fundamental factors will be needed. While they are not there, the pair can "hang out" between this area and the level of 1.1500. The problem is that starting the upward trend of the pair does not give all the same fundamental factor, since we do not get any positive from the eurozone. It is also unknown how the UK exit from the EU will affect the eurozone economy. To date, there are no major macroeconomic publications planned in the States or the EU.
Nearest support levels:
S1 - 1.1414
S2 - 1.1353
S3 - 1.1292
Nearest resistance levels:
R1 - 1.1475
R2 - 1.1536
R3 - 1.1597
Trading recommendations:
The currency pair EUR / USD continues to move up. Thus, now remain relevant long positions with a target of 1.1475. Heikin Ashi's turn down will indicate the beginning of a downward correction round.
Short positions are recommended to be opened after overcoming the moving averages by traders. The first target for the downward movement, in this case, will be the level of 1.1353.
In addition to the technical picture should also take into account 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