4 hour timeframe
Technical details:
Senior linear regression channel: direction - sideways.
Junior linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 69.1370
The EUR / USD currency pair spent the last three trading days in a frank flat. The first trading day of the new week can also pass with weak volatility, since no important macroeconomic report has been scheduled to date. Even the speech of Mario Draghi at the University of Bologna on Friday does not concern any monetary policy or Brexit and, accordingly, won't cause any market reaction. Thus, the pair will have to either spend the whole day in a narrow price range between the moving average line and Murray's level "2/8", or leave this corridor, giving traders technical factors for trading. However, even if Murray's "2/8" level will be reached, this will not guarantee growth for the pair, since the previous two attempts turned out to be false. Thus, the couple is now in an incomprehensible position. Based on this, traders are advised to wait for the situation to be cleared up in order for the emergence of technical grounds, as well as, the opening of certain positions. Jerome Powell will be able to get off the ground.
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:
Currency pair EUR / USD is adjusted. Therefore, it is recommended to open long positions in case of a confident overcoming the level of 1.1353 and two previous local maxima with the target of 1.1414.
Short positions can be considered again after the price is fixed back below the MA. In this case, the tendency for the instrument to change to downward, and the first goal will be the level of 1,1292.
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 unidirectional movement.
The younger linear regression channel is the purple lines of unidirectional movement.
CCI - blue line in the indicator window.
The moving average (20; smoothed) is on the blue line located at the price chart.
Murray levels - multi-colored horizontal stripes.
Heiken Ashi is an indicator with colored bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com