EUR / USD. November 27th. The trading system. "Regression Channels". Euro currency still does not find grounds for growth

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -87.8267

The currency pair EUR / USD on Tuesday, November 27, corrected to the moving average line once again and resumed the downward movement. In general, on the first trading day of the week, a multidirectional movement was observed. There are several important points to note that are very remarkable for the current state of affairs. First, the Italian government, after threats from the European Union, to apply penalties due to the non-fulfillment of agreements on the allowable budget deficit decided to revise the budget for 2019. Italy wants to reduce the deficit to 2%, which is still much higher than the EU's required 0.8%. Thus, on the one hand, the country makes a compromise, on the other, this may not be enough. However, the euro against the background of this news almost did not grow. Secondly, the approval of all EU leaders of a document on Brexit also remained practically without attention from market participants. These two points indicate that traders are not ready to buy Euro currency without good and real fundamental reasons, they are not ready to buy rumors and hints in a new portion. Thus, despite occasional corrections on the pair, the downtrend is preserved and visible to the naked eye. To refract, it will require either serious fundamental reasons or the banal satiation of the market with US currency. Yet forever the US dollar cannot go up.

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. Turning the Heikin Ashi indicator up will serve as a signal for manual reduction of sell orders.

Long positions with a target of 1.1414 will become relevant not earlier than the next pair of moving averages. However, even in this case, you should not immediately count on the formation of an uptrend, as the foundation is clearly not on the side of the European currency.

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 -