4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - sideways.
Moving average (20; smoothed) - down.
CCI: -125.3314
The currency pair EUR / USD on Wednesday, December 12, continues its downward movement, after fixing below the moving average line. It seems that the rather modest uptrend has ended, and the pair is now waiting for another decline below 1.1200. There is, of course, the hope that the pair will simply remain within the side area, the likeness of which can be seen from November 21. The boundaries of this area are fuzzy, but still, there is a chance that the pair will not be able to overcome the Murray level of "1/8" - 1,1292. From a fundamental point of view, everything remains the same. No positive news on the topic of Brexit, or on the Italian budget. Today in the European Union, a secondary indicator of industrial production in October will be published. But much more interesting information is expected from the States. Today in America, the consumer price index for November will be published and it is expected that it will slow down from 2.5% to 2.2% y / y. This report may temporarily support the Eurocurrency. Also today, there will be a meeting between Wives Claude Juncker and Italian Prime Minister Conte on the budget. A little later, Jerome Powell will give a speech in Congress. Recall that during the last of his speeches, "dovish" notes were traced. Thus, if markets today hear something about a reduction in monetary policy tightening, it can also put pressure on an already overbought US dollar.
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 currency pair EUR / USD continues to move down. Thus, it is recommended today to trade short positions with the goal of 1.1292. The color of 1-2 bars with the Heikin Ashi indicator in purple will signal a turn of the corrective movement.
It is recommended to open long positions if traders manage to overcome the moving average. In this case, the target for the long positions will be the level of 1.1414, and the trend in the instrument will again become ascending.
In addition to the technical picture, you should also consider 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 younger 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 - www.instaforex.com