EUR / USD. December 17th. The trading system. "Regression Channels". Inflation in the EU may stir the market

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -89.9027

The currency pair EUR / USD on Monday, December 17, worked and rebounded from the Murray level of "1/8" - 1.1292. If you look more closely, the pair perfectly fulfilled its past local minimum. Thus, this level (1.1270) can now support the European currency and keep it from new declines. From a fundamental point of view, new data concerning the EUR / USD pair has not been made available to traders. Moreover, already on December 20, many politicians will go on vacation, so there will be very little news from the European Central Bank and the political spheres of the European Union. On the first trading day of the week in the eurozone, a report on the consumer price index for November is scheduled. It is expected that inflation will be 2% in annual terms. However, if the real value of the index is lower, then the Eurocurrency may again be under pressure. The Brexit theme seems to be closed for 2018. Of course, certain information may come in, for example, the speeches of officials or Theresa May. However, voting in parliament will take place as early as January 2019, unless there are new transfers and new political changes in the UK. From a technical point of view, an upward movement to the moving average is possible, and possibly even higher, since the level of 1.1270 is a support for the pair.

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 begun a correction against the downward trend. Turning the Heikin Ashi indicator down will signal the opening of shorts with a target of 1.1270 and in case of overcoming this level with a target of 1.1230.

Buy positions are recommended to be considered not earlier than traders overcome the moving average line with a target of 1.1414. Long positions will be relevant in small lots since both linear regression channels are directed downwards.

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 -