4-hour timeframe
Technical details:
The senior linear regression channel: direction - sideways.
The junior linear regression channel: direction - down.
Moving average (20; smoothed) - down.
CCI: -42.3087
The last trading day of the week promises to be extremely boring in terms of macroeconomic news. To date, no important publications have been planned in the European Union. And this means that the support of Euro currency from the EU will not wait for sure. In the United States, industrial production and consumer confidence index from the Institute of Michigan in February will be published today. But this is not the most significant fundamental news, so the market reaction may be minimal or absent altogether. In the coming hours, the Heikin Ashi indicator may turn down, which will mean the resumption of the downtrend for the EUR / USD pair. No matter how much we expect the pair to strengthen to 1.1500, the bulls are now extremely weak and cannot even overcome the moving average line. In fairness, it should be noted that they have no fundamental support. Thus, a certain probability of a hike upward with a preliminary consolidation above the moving one persists, but with every hour the chances decrease. Thus, based on the foregoing, the downward trend in the instrument is preserved, which means that short positions remain relevant at the moment. Instrument volatility has increased in recent days.
Nearest support levels:
S1 - 1.1230
S2 - 1.1169
S3 - 1.1108
Nearest resistance levels:
R1 - 1.1292
R2 - 1.1353
R3 - 1.1414
Trading recommendations:
The EUR / USD currency pair is trying to resume its downward movement. The color of 1-2 bars with the Heikin Ashi indicator in blue will signal the opening of new shorts with a target of 1.1230.
Buy positions are recommended to be considered not earlier if the Bulls overcome the moving average line with the first target of 1.1414. However, as before, the foundation does not support the European currency now.
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 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