EUR / USD. December 18th. The trading system. "Regression Channels". Trump asks Powell not to raise

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: 6.4182

The currency pair EUR / USD on Tuesday, December 18, corrected to the moving average line and Murray's level of "2/8" - 1.1353, but could not overcome them. Despite the rather tangible strengthening of the European currency, the pair is still in a downtrend. The only thing that should be noted is that there are no new important data from the European Union or the States. Yesterday's inflation report was completely ignored, and this suggests that traders do not want to risk on the eve of holidays and are not ready for new sales of euro, while the pair is near its annual lows. To date, not a single macroeconomic report has been scheduled either in the eurozone or in the USA. Therefore, the influence of the foundation on the movement of the currency pair today will also be absent. Also noteworthy is the speech of Donald Trump, or rather the appeal to Jerome Powell. This time the leader of the USA did not criticize the head of the Fed and did not hint to him that he didn't need to raise his bid, but asked openly not to do so. Trump can be understood that the US dollar rose in price very strongly in 2018, which greatly complicates the servicing of public debt. In addition, economic growth in the States is slowing down, which Powell himself understands. It seems that the difference in opinions is only in the timing of the suspension of the course on tightening monetary policy.

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 continues its upward correction. A reversal of the Heikin Ashi indicator down, when the price is below the moving average, will signal the opening of new short positions with the target at 1.1292.

Buy positions are recommended to open in small lots if the pair overcomes the level of 1.1353 with the target of 1.1414. As before, for a stronger growth of the euro currency, fundamental fundamentals will be required.

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 -