EUR / USD. January 10th. The trading system. "Regression Channels". Unexpectedly, the euro has good growth prospects.

4-hour timeframe


Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - up.

CCI: 182.6381

The currency pair EUR / USD on Thursday, January 10, continues its upward movement, which was resumed the day before. For the first time in a long time, we can say that the US dollar has collapsed. There were many reasons for this at once, and each of them individually would hardly have caused a strong fall in the dollar. We have already written about them in previous reviews. Among the new factors of the decline in the US currency, we can note the publication of the Fed's protocol, in which the pigeon rhetoric and the doubts about future increases in the key rate were highly expected. Also, several Fed members spoke at once, in particular, the head of the Federal Reserve Bank of Atlanta, Raphael Bostic, who even made a reduction in the key rate in the future. In general, it seems that the Fed in 2019 will indeed complete the course on tightening monetary policy, which means that the US dollar will lose one of the most important support factors. The beginning of 2019 remains behind the euro currency also because the "shutdown" in the States continues, and the negotiations on the trade conflict with China have so far not been completed with anything positive. In general, quite imperceptibly, the US dollar is turning from an obvious leader almost into the main outsider. The euro has all the chances to continue growth, especially since the technical picture is now also completely on the side of the euro currency.

Nearest support levels:

S1 - 1.1536

S2 - 1.1475

S3 - 1.1414

Nearest resistance levels:

R1 - 1.1597

R2 - 1.1658

R3 - 1.1719

Trading recommendations:

The currency pair EUR / USD continues to move up. Therefore, now long positions with targets 1.1597 and 1.1658 are again relevant. A signal to close the long positions manually will turn the Heikin Ashi indicator down.

It is recommended to open sell orders after traders have overcome a moving average line. In this case, the tendency for the instrument to change to descending, and the short positions will be relevant with the first goal of 1.1414.

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 -