EUR / USD. January 17. The tading system. "Regression Channels". Euro currency again under the pressure of the market

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -106.0778

The currency pair EUR / USD on Thursday, January 17, continues its weaker downward movement, as indicated by the blue bars of the Heikin Ashi indicator. Yesterday was a fateful event for the UK, but events in this country could also affect the Euro currency rate. Much to her surprise, Theresa May managed to keep herself in the chair of the Prime Minister. On voting in the British Parliament with a minimum margin of 19 votes, she won and will not be dismissed. By the way, such voting results had no effect on the euro rate. To date, the Eurozone is scheduled to publish the consumer price index for December. Experts predict that we should expect values of 1.6% y / y. This is already a low inflation value, if the real value is even lower, then traders can start selling off the block's currency with new forces. No important information is expected from the States today. The euro, meanwhile, is again approaching its annual lows. Actually, up to the level of 1.1215, there are only about 160 points. Given the fact that no positive information is still coming from the EU, and Mario Draghi recently made it clear to the markets that there can be no tightening of monetary policy in the coming months, the prospects for the euro at the beginning of the new year look very foggy. To the aid of the euro can come only States.

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 currency pair EUR / USD continues to move down. Therefore, now sell orders with the first target of 1.1353 are still recommended. Heikin Ashi's upside reversal will serve as a signal to manually reduce the short positions.

Long positions are recommended to open with the target of 1.1475, if the pair consolidates above the moving average line. In the coming days, the pair will find it difficult to fulfill this condition, since no positive news from the EU is expected.

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 -