EUR / USD. February 4th. The trading system. "Regression Channels". American statistics can help the dollar today.

4-hour timeframe


Technical details:

The senior linear regression channel: direction - up.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - up.

CCI: -17.1104

The first trading day of the new week for the EUR / USD currency pair begins with a new round of corrective movement towards the moving average line. Impressive macroeconomic statistics in the United States on Friday provided very indirect support for the US currency. At least, it was not enough to overcome the MA and change the trend to the downward. The first day of the week, from our point of view, may remain behind the US currency. The fact is that the Europeans did not have time on Friday to work out the positive data from the United States, so they can do it today, February 4. In general, the pair continues to trade in a wide channel, limited by the levels of 1.1500 and 1.1290 (approximately). There are no weighty reasons for the pair to leave below this channel (for the time being), but there are no fundamental reasons for a serious strengthening of the euro currency. Therefore, in the near future, we do not expect the pair to leave this channel. To date, no important macroeconomic publication has been planned either in the States or in the European Union. The report on US factory orders is not important. Thus, the European trading session may remain for the dollar, and the US, to pass in neutral trading. The further trend of the tool will depend on whether or not the moving average is overcome.

Nearest support levels:

S1 - 1.1414

S2 - 1.1353

S3 - 1.1292

Nearest resistance levels:

R1 - 1.1475

R2 - 1.1536

R3 - 1.1597

Trading recommendations:

The EUR / USD currency pair continues to be adjusted. New long positions are recommended to open in case of a price rebound from the moving average line with the first target of 1.1475. A reversal of the Heikin Ashi indicator up will confirm the completion of the correction.

It is recommended to open orders for sale in case of overcoming by traders the moving and, preferably, the level of 1.1414 with the target of 1.1353. In this case, bears will take the lead on the market.

In addition to the technical picture should also take into account 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 -