EUR / USD. January 14th. The trading system. "Regression Channels". "Shutdown" in the United States continues, Trump ratings

4-hour timeframe


Technical details:

The senior linear regression channel: direction - sideways.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - sideways.

CCI: -17.0108

The currency pair EUR / USD on Monday, January 14, in the context of the continuing "shutdown" in America and the upcoming vote on the Brexit in the British parliament, adjusted to the moving average line. The consumer price index in the United States has slowed, but exactly in line with the forecast. Therefore, the decline in the pair, respectively, the growth of the dollar, was hardly due to the publication of macroeconomic statistics in the States. Moreover, a study was conducted the other day, which shows that 56% of respondents blame Trump for such a long-term "shutdown" and his rating drops. It is unlikely, of course, that Trump will be greatly upset, but in itself a remarkable fact. For the currency pair, the key area today is around the MA. If the pair fails to consolidate below it, the uptrend will continue and we can expect a resumption of the upward movement with the first target of 1.1536. From macroeconomic publications today, only the report on industrial production for November in the European Union can be noted. In America, no important report has been scheduled for today. In the coming days, the attention of markets will be focused on the UK. Recall that tomorrow there should be a vote on the project of Theresa May on the country's withdrawal from the EU. The results of this vote or any other important information on this topic may affect the EUR / USD pair.

Nearest support levels:

S1 - 1.1475

S2 - 1.1414

S3 - 1.1353

Nearest resistance levels:

R1 - 1.1536

R2 - 1.1597

R3 - 1.1658

Trading recommendations:

The EUR / USD currency pair has resumed a downward correction and has worked the MA. It is recommended to open new long positions in case of a Heikin Ashi upward indicator with a target of 1.1536, with the price positioning above the moving average.

Short positions will become relevant after the pair is fixed below the moving average line. In this case, the trend for the pair to change to a downward, and the first goal will be the Murray level of "3/8" - 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 -