4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -99.0604
At the beginning of the new trading week, the EUR / USD currency pair continues to trade lower and, thus, move towards the goal we announced a week ago, 1.1292. Before that, the target remains about 30 points, and the key question remains: what will happen after reaching this level. From our point of view, the pair will remain in the side channel, limited by the levels of 1.1290 and 1.1500. No matter how weak the Euro currency, there are no compelling reasons for leaving below the level of 1.1290. In the future, although this option cannot be excluded. Thus, we expect the option with a turn-up and the beginning of the upward movement in the coming days. From macroeconomic events on Monday, February 11, there is nothing special to note. At the weekend, too, nothing interesting in the world regarding the euro has happened. Thus, technical factors will be of great importance today. The Heikin Ashi indicator is still down. Its upward reversal may indicate a round of upward correction or the beginning of an upward movement to 1.1500. But until this indicator has turned up, the downward movement of the intraday continues. We also note that the volatility of the currency pair remains extremely low.
Nearest support levels:
S1 - 1.1292
S2 - 1.1230
S3 - 1.1169
Nearest resistance levels:
R1 - 1.1353
R2 - 1.1414
R3 - 1.1475
Trading recommendations:
The EUR / USD currency pair continues a slight downward movement. Thus, short positions remain relevant until the Heikin Ashi indicator reverses to the top with the goal of Murray's level of "1/8" - 1.1292.
It is recommended to open buy orders not earlier than traders overcome the moving average line with a target of 1.1414. The trend for the instrument will then officially change to ascending.
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