EUR / USD. December 6. The trading system. "Regression Channels". Not enough grounds for a new euro trend

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - sideways.

CCI: -59.6437

The currency pair EUR / USD on Thursday, December 6, once again consolidated below the moving average line. Yesterday was a day without strong bursts of activity, a pronounced trend movement was absent. This was due to the fact that the States had a Day of Mourning for George Bush Sr., who passed away on November 30. Eurozone business activity indexes supported the euro only for a very short period of time. And the evening report "Beige Book" did not have any influence on the course of trading. Thus, we establish a fact that the downward trend in the instrument is maintained. Today in the United States, reports on the change in the number of people employed in the private sector ADP, business activity index in the areas of services and production of Markit and ISM will be published. In the evening, there will be a speech by Fed Chairman Jerome Powell. Thus, today, a sufficient amount of important macroeconomic information will be available to traders, and market volatility is likely to increase. From a technical point of view, the pair can resume the downward movement today. However, if the pound continues to decline, as if nothing had happened, then the euro has no such compelling reasons for a new and strong decline. Thus, we believe that the downward mood among traders will continue, but in the coming days there will not be a strong fall in the European currency.

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 fixed below the MA. Thus, today it is recommended to trade for a fall after turning the Heikin Ashi indicator down with the goal of Murray level of "1/8" - 1,1292.

Long positions with a target of 1.1414 will become again relevant in small lots, if the bulls manage to overcome the moving average again. However, even in this case, it should be remembered that there are few fundamental grounds for the growth of the euro.

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 -