EUR / USD for September 5. Trading system "Regression channels". Progressive decline in the pair continues

4-hour timeframe

analytics5b8f7ca96138d.png

Technical data:

Senior channel of linear regression: direction - down.

The younger channel of linear regression: the direction is up.

Moving average (20, smoothed) - down.

–°CI: -72.9665

Yesterday, the EUR / USD currency pair fell to the level of Murray "5/8" and could not overcome it, having started adjusting to the moving middle line. There were no important events and news in the European Union and the States yesterday. Thus, the most important conclusion that can be drawn now is that traders have no reason to change their preferences in the foreign exchange market. Proceeding from this one factor, it can be assumed that until such reasons appear (if they appear), the US dollar can continue to go up in tandem with the euro. What can affect the preferences of traders? First of all, this, of course, is the policy of Donald Trump. Markets have recently reacted to any escalation of the trade conflict by dollar purchases. Thus, the weakening of trade wars can lead to demand for risky assets, in particular, the euro. Furthermore, the targeted actions of Trump on the weakening of the national currency may affect the US dollar negatively. This includes any scandals in the White House, investigations into Trump's relations with the Russian Federation and any other events that will cast a shadow over the States. The third is an increase in the trade deficit and a fall in GDP. First of all, the growth of the trade balance deficit, as Trump's trade war is aimed precisely at reducing it. If this does not happen, traders can lose faith in the validity of Trump's actions in the international arena. First of all, the growth of the trade balance deficit, as Trump's trade war is aimed precisely at reducing it. If this does not happen, traders can lose faith in the validity of Trump's actions in the international arena. First of all, there is the growth of the trade balance deficit, as Trump's trade war is aimed precisely at reducing it. f this does not happen, traders can lose faith in the validity of Trump's actions in the international arena.

Nearest support levels:

S1 - 1.1536

S2 - 1.1475

S3 - 1,1414

Nearest resistance levels:

R1 = 1.1597

R2 = 1.1658

R3 = 1.1719

Trading recommendations:

The EUR / USD currency pair may resume a downward movement. The goal for shorts today is the level of 1.1536. The signal for the opening of short positions will be the downturn of the Heiken Ashi indicator or a rebound of the price from the level of Murray "6/8".

It is recommended to open a buy order only after fixing the price above the moving average line with the target of 1.1658. In this case, the initiative will pass into the hands of bulls, which will be able to resume the formation of the uptrend.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The upper channel of linear regression is the blue lines of unidirectional motion.

The lowest linear regression channel is the violet lines of unidirectional motion.

CCI - the blue line in the indicator window.

Moving average (20; smoothed) - the blue line on the price chart.

Levels of Murray - multi-colored horizontal stripes.

Heiken Ashi is an indicator that color bars in blue or purple.The material has been provided by InstaForex Company - www.instaforex.com