4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – up.
CCI: 82.5944
The previous chapter of the trade war between Beijing and Washington ended with the imposition of a 25% duty by Trump on Chinese imports totaling about $ 200 billion. However, as we expected, despite Trump's threats to introduce new duties that will cover all Chinese imports, Beijing announced the introduction of its duties in the amount of $60 billio on US goods. Their action will begin on June 1, 2019. Recall that imports from China to the United States is approximately 500 billion, and in the opposite direction – about 150 billion. It is unambiguously clear who is a less profitable trade war. But China seems to clearly understand that if you make concessions to Trump, then everything can end with more new requirements, the desire to get more concessions. Thus, Beijing continues to resist, and negotiations continue despite the mutual introduction of duties. Now, the next move is for Trump, who is probably frantic now, given his recent statement that China should not respond to the imposition of duties, as "it will only get worse." In the near future, through his Twitter, Trump may announce the introduction of a new package of duties, which, most likely, China will respond again.
Nearest support levels:
S1 – 1.1230
S2 – 1.1169
S3 – 1.1108
Nearest resistance levels:
R1 – 1.1292
R2 – 1.1353
R3 – 1.1414
Trading recommendations:
The EUR/USD currency pair has started a new round of downward correction. Thus, after the correction is completed, it is recommended to trade for an increase with targets located near the level of 1.1292.
It is recommended to consider short positions on the pair not earlier than fixing the price below the moving average line with the first target at 1.1169.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of illustrations:
The upper linear regression channel – blue lines of the unidirectional movement.
The lower linear regression channel – purple lines of the unidirectional movement.
CCI – the 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com