EUR / USD. January 8. The trading system. "Regression Channels". The level of 1.1475 prevents bulls to new heights

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The younger linear regression channel: direction - up.

Moving average (20; smoothed) - up.

CCI: 75.6540

The EUR / USD currency pair has completed Murray's level of "8/8" - 1.1475 for the fourth time, again failed to consolidate above it and rebounded from it. Thus, it is now possible to reduce the pair to the moving average line. As we have said more than once, the growth of the euro currency now has a limited potential, since there are no weighty reasons for the increased demand for the euro currency. Moreover, the area of 1.1440 - 1.1475 now acts as a powerful resistance for the tool. There is also a wide side channel inside which the pair has been trading for several weeks. Based on all these considerations, it is logical to expect a decline in the pair to the area of Murray level of "3/8" - 1.1322. From a fundamental point of view, there is nothing special to note now. On the first trading day of the week, there were no important macroeconomic publications and reports. Today, January 8, the news calendar is also almost empty. On the subject of Brexit, there was no news, the suspension of government work in the States, from our point of view, is not something out of the ordinary, this happens in America, and Jerome Powell said that he was not going to resign, even if asked by the president of the United States. Thus, now a very interesting time comes for the pair, when the fall of January 2 is leveled, and the question arises: what is next?

Nearest support levels:

S1 - 1.1444

S2 - 1.1414

S3 - 1.1383

Nearest resistance levels:

R1 - 1.1475

R2 - 1,1505

R3 - 1.1536

Trading recommendations:

The EUR / USD currency pair has begun to adjust, as indicated by the Heikin Ashi blue bars. Thus, it is recommended to open new long positions with a view to 1.1475 after Heikin Ashi reversal upward when the price is above the moving average line.

Orders for sale can be viewed not earlier fixing the pair below the moving average line with targets at 1.1383 and 1.1353. Given the presence of a pair in the side channel, it is best not to open orders in large lots.

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 -