4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - down.
CCI: -141.4935
The EUR / USD currency pair on Wednesday, March 6, continues its downward movement, but has reached the level of Murray "1/8" - 1.1292 and cannot pass it yet. It should be noted that the current price values are already minimal for a pair over a long period of time. To date, the pair tried to overcome the area of 1.1250 - 1.1290 at least 5 times, and each last rebound was less than the previous one. Thus, we are still inclined to think that the pair will manage to overcome this area, which will mean a new sentence for the euro. There is little hope that tomorrow the ECB will please investors with something. At best, statements at press conferences will be neutral. If the Central Bank hints at the possible prolongation of stimulating the economy or launching a new phase, this will further push the euro position. For today in the European Union, no important macroeconomic publications are planned. Today, the States will report on changes in the level of employment in the private sector from ADP. This is a fairly important report and a strong real value will support the US currency. From a technical point of view, the downward trend continues. There are no signs of an upward correction now, as the Heikin Ashi indicator is pointing down.
Nearest support levels:
S1 - 1.1292
S2 - 1.1230
S3 - 1.1169
Nearest resistance levels:
R1 - 1.1353
R2 - 1.1414
R3 - 1.1475
Trading recommendations:
The EUR / USD currency pair continues its downward movement. Therefore, it is now recommended to continue to trade short positions with a goal of about 1.1250. If the pair fails to overcome the level of 1.1292 or Heikin Ashi turns up, it will be a signal for correction.
Once again, the buy positions can be viewed after the bulls are fixed above the moving average line. In this case, the trend in the instrument will change to ascending again, and the first target for the long positions will be 1.1414.
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 - www.instaforex.com