EUR / USD. 25th of January. The trading system. "Regression Channels". Mario Draghi finished off Euro currency

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -149.8684

On Friday, January 25, the EUR / USD currency pair fell to Murray's level of "1/8" - 1,1292 and, having failed to overcome it, the upward correction began. The key event of the past day was the speech of the head of the ECB, Mario Draghi, dedicated to the meeting of the regulator. In general, his speech can be described for the euro as negative. There were too many "concerns", "increased risks" and "negative trends". Draghi noted the increased uncertainty in the Brexit issue, as well as the negative impact of this on the EU economy. He also noted weak macroeconomic indicators in the eurozone. In general, according to yesterday's results, the eurocurrency collapsed quite strongly against the US dollar. Today a weak upward correction has begun, but the trend in the instrument remains the same. The only important macroeconomic event of the day will be a report on orders for durable goods in the United States. In America, by the way, the record "shutdown" continues, but this event has no negative impact on the US dollar paired with the euro. From a technical point of view, you should wait for the completion of the correction, that is, the Heikin Ashi indicator turns down.

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 round of upward correction. Thus, it is recommended to open new short positions in case of a downward reversal of the Heikin Ashi indicator with targets at 1.1292 and 1.1230.

Buy orders will become relevant if traders overcome the moving average with the first goal of 1.1414. Senior linear regression channel can support an upward trend. There are no fundamental reasons for this now.

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 -