EUR / USD. December 7th. The trading system. "Regression Channels". US reports can support the US dollar

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: 54.6585

The EUR / USD currency pair on Friday, December 7, completed Murray's level of "3/8" - 1.1414 and again failed to overcome it. As we have repeatedly said, despite even regular price fixing above the moving average, the growth potential of the euro currency is now very limited. At the moment, the pair is ready to descend back to the moving average line and fix below it. Moreover, in recent days there has been a frank flat, that is, no trend movement. This phenomenon is logical, given the uncertainty associated with the final stage of the procedure Brexit. Recall that now in the British Parliament, there are 5-day debates on this issue, which will end on December 11 with a vote on the proposals of Theresa May. This topic has more relevance, of course, to the British pound, however, the Eurocurrency will also react to what is happening in Britain. Plus, a report on GDP for the third quarter will be published in the European Union today. Neutral forecasts, 1.7% g / g. Any deviation of the real value from the forecast can cause traders to react. In the States today, there are reports on unemployment, changes in the volume of wages, NonFarm Payrolls. The deviation of these reports in a big way (except for unemployment) will provoke a strengthening of the American currency with a high degree of probability.

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 above the moving, but is currently being adjusted. If the pair remains above the moving average, and the Heikin Ashi indicator turns up, this will signal the opening of new long positions with a target of 1.1414.

Sell orders are recommended to open after bears overcome a moving average line with a target of 1.1292. Macroeconomic statistics, scheduled for today in the US, can help traders to overcome moving.

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 -