EUR / USD. November 26th. The trading system. "Regression Channels". EU leaders approve "deal" between EU and UK

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - sideways.

Moving average (20; smoothed) - down.

CCI: -138.1231

The currency pair EUR / USD on Monday, November 26, resumed the downward movement, broke the moving and Murray level of "2/8". As we assumed several times last week, the euro did not find a good reason for a stronger upward movement. Thus, to overcome the Murray level of "3/8" failed, to update the previous local maximum, too. Consequently, all technical factors were on the resumption of a downtrend. From a fundamental point of view, there is also no good news for the euro currency. The Brexit procedure continues to drag out despite progress in the negotiations between Theresa May and the European Commission. The EU leaders approved on Sunday at an emergency EU summit agreement on leaving the UK from the block. Even Spain approved. However, further we are waiting for a vote in the parliament of Great Britain, and in the European Union, the European Parliament and the parliaments of all EU member states should give their consent to this. The greatest number of concerns is the British Parliament, which may not accept Theresa May's bill. Today, of the significant fundamental events can be noted only the speech of the ECB President Mario Draghi, who can touch on the topics of Brexit and monetary policy. No important macroeconomic reports are scheduled for today.

Nearest support levels:

S1 - 1.1292

S2 - 1.1230

S3 - 1.1169

Nearest resistance levels:

R1 - 1.1353

R2 - 1.1414

R3 - 1.1475

Trading recommendations:

The EUR / USD currency pair has resumed its downward movement. Thus, short positions with the target of 1.1292 are relevant now. The reversal of the Heikin-Ashi indicator to the top will signal a coil of upward correction.

Buy positions are recommended to be considered only after re-fixing the pair above the moving average line with the targets of 1.1414 and 1.1475. Although the chances of a change in market sentiment with the current fundamental background are not very many.

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 -