EUR / USD. 29th of October. The trading system. "Regression Channels". Positions of US currency remain indestructible

4-hour timeframe


Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -48.1691

The EUR / USD currency pair on Monday, October 29, launched a new round of the corrective movement, having failed to overcome Murray's level of "2/8" - 1.1353. The purple bars of the Heikin Ashi indicator continue to signal a correction. The MA has not yet been worked out, so the correction may continue. On the first trading day of the week in the European Union, no important macroeconomic publications are planned. Form across the ocean today, there will be data on changes in personal spending and incomes of the American population. The forecasts for these reports are neutral, so there is no significant surge in volatility at the time of their release. In general, the technical picture remains the same as last week. The US dollar remains in the lead due to a variety of factors, and the European currency can be adjusted to the maximum of the moving average line. Thus, to break a downtrend will require the fulfillment of one of two conditions. Either it is necessary to wait for the players to get fed up with dollar purchases, or to wait for strong fundamental events in favor of the euro currency. Moreover, it is more likely that such data may come from the United States, and not from the European Union. By the way, Donald Trump did not speak for a long time with "loud" statements.

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 is currently being adjusted. Thus, to open new short positions with a view to the level of 1.1353, it is recommended to wait for the Heikin Ashi indicator to turn down or the price rebound from the moving average line.

Buy-positions will become relevant no earlier than price fixing above the moving with the first target of 1.1475. However, fundamental reasons are still needed for this. Overcoming the MA will change the tendency of the instrument to ascending.

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 the unidirectional movement.

The junior 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 -