EUR / USD. 5th of December. The trading system. "Regression Channels". Euro currency has nothing to oppose the US dollar

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - sideways.

Moving average (20; smoothed) - sideways.

CCI: -85.0172

The currency pair EUR / USD on Wednesday, December 5, resumed its downward movement, unable to overcome the Murray level of "3/8" - 1.1414. Thus, the next Eurocurrency chance of growth is lost. Two news slightly supported the euro at yesterday's auction. First, the Italian government announced that it would revise its draft budget and the new document "must satisfy" the European Commission. Secondly, the European Court of Justice reported that the country that initiated the withdrawal from the EU could unilaterally withdraw its decision. This news gave hope to the market that both conflict situations would be resolved in the best possible way. However, we warned yesterday that, most likely, the effect of these data will be very short-term. So it happened. Toward evening, the pair turned down and leveled all the advantages of the euro. At the moment, the downward movement continues. Today, the main package of macroeconomic messages will come from the eurozone. Business activity indices in the service and production sectors for November, as well as retail sales for October, will be published. Weak macroeconomic statistics can create additional pressure on the European currency, which already does not find any reason for more or less serious strengthening. Late in the US, the Beige Book will be published.

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 has once again fixed above the MA. Thus, today it is recommended to consider purchase orders with a target of 1.1414 (the second target is 1.1475). Manually closing long positions is recommended in the case of 1-2 bar color with Heikin Ashi indicator in blue.

Sell orders will again become relevant no earlier than price fixing below the moving average line with a target of 1.1292. In this case, the initiative on the instrument will again pass into the hands of bears.

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 -