4 hour timeframe
Technical details:
Senior linear regression channel: direction - down.
Junior linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: -107.2927
The EUR/USD currency pair had a correction to the moving average line but difficult to break through, hence, the uptrend of the pair remains. On the last trading day of the week, there is no major macroeconomic publications are scheduled. Only preliminary values of indices of business activity in the services and production sectors in the USA and the Eurozone will be published. However, these indicators are unlikely to cause a strong response from market participants. In the last two days, the Eurocurrency showed quite high volatility against the background of the decisions made by the Fed and the subsequent correction. Now, everything can return to normal that is to the minimum volatility of the pair. For the euro, the positive situation right now is that she managed to stay above the moving average as the US economy still looks much more powerful than the European one, despite the Fed's refusal of further increases in the key rate, The US economy still looks much more powerful than the European one. Moreover, at least in America, there was a period when monetary policy was tightened compared to Europe where there was none. Thus, from a fundamental point of view, the advantage still remains on the side of the US dollar. From a technical point of view, the upward movement can resume now if the Heiken Ashi indicator turns up. Otherwise, traders are still waiting for a change in trend to a downward one.
Nearest support levels:
S1 - 1,1353
S2 - 1.1322
S3 - 1.1292
Nearest resistance levels:
R1 - 1.1383
R2 - 1.1414
R3 - 1.1444
Trading recommendations:
The EUR / USD currency pair may complete the correction. Thus, the targets for long positions are the levels of 1.1414 and 1.1444 that are still relevant and turning the indicator Heiken Ashi to the top will indicate completion of the downward correction.
Sell positions will become relevant not earlier than the fixation of the pair below the moving average line with target levels of 1.1322 and 1.1292, since in this case, the trend of the pair will change to downward.
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 on the price chart.
Murray levels - multi-colored horizontal stripes.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com