4-hour timeframe
Technical data:
The upper linear regression channel: direction – up.
The lower linear regression channel: direction – up.
The moving average (20; smoothed) – up.
CCI: -0.4417
The EUR / USD pair continues to be adjusted for the third trading day in a row and at the same time, it cannot work out the moving. Today is not only the last working day of the week but also the last working day of the month. The G20 summit starts today, but its results will be known only at the weekend. The talks between Donald Trump and Xi Jinping will be held on Saturday. Thus, today, traders are unlikely to show active trade, since it makes little sense to risk before such an important event as the meeting of the leaders of China and the United States. Talking once again about the importance of the meeting between Trump and Jinping makes no sense. The only thing we would like to add is that we should not expect too much from this meeting. Yes, Trump wants to sign a trade agreement as soon as possible and on the terms that are beneficial to him. But China has already shown that it does not agree to concede in all States. Therefore, we believe that there will be little progress in the negotiations. Today, there will be several important macroeconomic reports that can have an impact on the foreign exchange market. First, it is the publication of the preliminary value of inflation for June in the eurozone. According to experts, this figure will remain unchanged compared to the previous month – 1.2%. Second, the changes in personal income and spending of the American population in May. Both of these reports are not paramount but can still cause a reaction from traders.
Nearest support levels:
S1 – 1.1353
S2 – 1.1292
S3 – 1.1230
Nearest resistance levels:
R1 – 1.1414
R2 – 1.1475
R3 – 1.1536
Trading recommendations:
The EUR/USD currency pair continues its downward correction to the moving average line. Thus, it is recommended to wait for the reversal of the Heiken Ashi up or rebound from the moving and buy the pair again with the target level of 1.1414.
It is recommended to buy the US currency after traders consolidate below the moving average line, which will change the trend to a downward one, with the first target of 1.1292.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of illustrations:
The upper linear regression channel – the blue line of the unidirectional movement.
The lower linear regression channel – the purple line of the unidirectional movement.
CCI – the 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com