4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - sideways.
CCI: -49.3671
The currency pair EUR / USD on Thursday, December 27, completed Murray's level of "4/8" - 1.1353 and started the upward movement, having managed to work out a sliding average line. Still, no important macroeconomic data are available to traders. Thus, movement with frequent kickbacks within a wide side corridor is now absolutely logical. A pair in recent weeks is often fixed either higher or lower below the moving average line, which again indicates the lateral nature of the movement. To date, several minor reports are planned in America, in particular, the level of consumer confidence, the sale of new homes and applications for unemployment benefits. However, these data are unlikely to have any impact on the movement of the currency pair. It should also be noted that technical factors are now of secondary importance since there is no trend as such. The indicator Heikin Ashi signals about frequent reversals and corrections inside the side channel of 1.1270 - 1.1470. In general, it is now possible to trade small lots between the upper and lower borders of the channel, or else one should generally refrain from opening any positions until the end of the holidays.
Nearest support levels:
S1 - 1.1383
S2 - 1.1353
S3 - 1.1322
Nearest resistance levels:
R1 - 1.1414
R2 - 1.1444
R3 - 1.1475
Trading recommendations:
The currency pair EUR / USD often changes direction. At the moment, more relevant short positions with targets 1.1353 and 1.1322. To make them open, you should wait for the Heikin Ashi indicator to turn down when the price is below the moving average.
Long positions can also be considered in small lots if traders overcome the moving average. In this case, the targets for the upward movement will be Murray levels of 1.1414 and 1.1444.
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