EUR / USD. December 14th. The trading system. "Regression Channels". Draghi pressed on the euro, but the currency has resisted

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: -53.6995

The currency pair EUR / USD on Friday, December 14, declined slightly, but this was enough to once again overcome the moving average line. In recent days, and even weeks, there is no trend movement, the pair is constantly changing the direction of movement and is fixed, then above, then below the moving average line. For the euro, this is not bad. At least, there is no new fall. Yesterday's speech at a press conference on the ECB meeting, Mario Draghi was dangerous for the Eurocurrency. First, Draghi noted a slowdown in the EU economy by the end of 2018. Secondly, he said that the tightening of monetary policy should not be premature, and normalization will be slower than originally expected. In principle, this means that in the coming months, you can not count on a rate increase. Against the background of such reports, the euro could lose even more positions. The traders didn't forget that this month, the European regulator is curtailing the quantitative easing program, so the euro has fallen "within reason." Draghi also noted that it is now difficult to predict anything, since trade relations between the EU and the States are not fully understood, and the situation with Brexit.

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 fixed below the MA. Thus, short positions with the target of 1.1292 are relevant now. However, in the opening of any positions now need to be extremely careful, as there is a high probability of flat.

It is recommended to open buy positions not earlier than the price is fixed back above the moving, in small lots, with a target of 1.1414. As in the case of short positions, you should consider the high probability of flat and frequent reversals of the pair.

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 -