EUR / USD. November 23. The trading system. "Regression Channels". The pair is at risk of going flat for a few days

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - sideways.

Moving average (20; smoothed) - up.

CCI: 18.2851

The EUR / USD currency pair on Friday, November 23, continues to trade slightly above the moving average line, having previously worked it out and have failed to overcome it. Thus, the upward mood in the market remains, but the pair has serious problems with overcoming the Murray level of "3/8" - 1.1414. From a fundamental point of view, traders in the last two trading days do not respond to incoming messages. The information was completely ignored that the EU and the UK agreed on all Brexit clauses and now the EU leaders, who must approve the entire document on the Brexit clause, have the floor. And, from our point of view, this information was ignored quite rightly, since, by and large, it does not mean anything. First, Brexit can be blocked by Spain (like any other country). Secondly, the voting in the British Parliament has not yet taken place and will take place only in December, which leaves the pound sterling in limbo for at least a few more weeks. On the last trading day of the week, there will be nothing interesting in terms of macroeconomic reports, except for preliminary values for indices of business activity in various areas of services and products in the USA and the Eurozone. These reports are unlikely to cause at least some reaction of the market since these are only preliminary values.

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 maintains the likelihood of continued upward movement. If the pair manages to overcome the level of 1.1414, then the long positions will become relevant with the goal of 1.1475. The color 1-2 bars indicator Heikin Ashi in blue will indicate a new round of correction.

Sell orders are recommended to be considered only after re-fixing the pair below the moving average. In this case, the downward trend resumes with the first target of 1.1292. For greater confidence in the short positions, it is recommended to wait and overcome the level of 1.1353.

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 -