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: 147.2197
Well, the Fed meeting was left behind, and the European currency strengthened quite strongly last night and tonight thanks to the "dovish" Fed rhetoric. First, the key rate remained unchanged at 2.5%. In principle, it was expected. Secondly, from the accompanying statement, the phrase about a systematic increase in the rate was lost. Instead, the Fed is now going to assess the state of the economy, and then make a decision on tightening monetary policy. There were words that "the need for a rate hike has weakened." Third, Jerome Powell at the press conference noted a decrease in inflationary pressure. All this was rightly regarded by the market as pigeon rhetoric. This year, based on this information, there may not be a single rate increase, contrary to the Fed's earlier plans for two increases. As a result, Euro currency grew by almost 100 points and thus kept the upward movement. From a technical point of view, everything remains the same. On Thursday, January 31, the States are scheduled to publish reports on personal income and expenses of the population. In the European Union, today released a preliminary value of GDP for the fourth quarter and the unemployment rate for December.
Nearest support levels:
S1 - 1.1475
S2 - 1.1414
S3 - 1.1353
Nearest resistance levels:
R1 - 1.1536
R2 - 1.1597
R3 - 1.1658
Trading recommendations:
The currency pair EUR / USD has resumed its upward movement. Thus, now remain relevant long positions with a target of 1.1536. A 1-2 color bar in blue with Heikin Ashi indicator will signal a manual reduction of long positions.
Sell positions are recommended to be considered if traders overcome a moving average line with a target of 1.1353. It seems that the euro remains in a wide and inaccurate side channel, limited to 1.1290 and 1.1530.
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