EUR / USD. December 4th. The trading system. "Regression Channels". Technical factor: a chance for a small increase in the

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: 79.5758

The currency pair EUR / USD on Tuesday, December 4, has once again consolidated above the moving average line. However, the potential for growth in the euro currency is still limited. We still believe that the Eurocurrency can now only rely on technical corrections, although, perhaps, the bottom of the pair has already felt. The problem for the euro is that there is still a lack of a strong fundamental background from the eurozone or a weak one from the States. Despite the fact that there were hints at the completion of the Fed rate increase program in 2019, so far these are only hints. In Europe, macroeconomic statistics do not make traders happy with the improvement, the European Commission cannot agree with the Italian government on the budget issue, and the whole Brexit procedure is under threat of failure due to the reluctance of the British parliament to accept Theresa May's initiatives. This does not mean that the growth of the euro currency is impossible, but the chances for a new fall are much greater. On Tuesday, no important macroeconomic reports are expected from either the States or Europe. Thus, technical factors today will be of paramount importance. Since the price has overcome the moving average, the uptrend in the short term will continue up to the reversal of the Heikin Ashi indicator.

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 -