Review for the "Regression Channels" system for EUR/USD pair on May 27: Eurocurrency prospects are still vague

4-hour timeframe


Technical details:

Senior linear regression channel: direction - down.

The younger linear regression channel: direction - down.

Moving average (20; smoothed) - up.

CCI: 150.4770

The last trading day of last week was the scenario of eurobucks. The only but very important macroeconomic report of the day showed that the number of orders for durable goods in the United States decreased by 2.1% y/y in April (excluding defense by 2.5% and defense and aviation by 0.9%). Thus, traders continued to reduce the dollar positions, which led to a slight strengthening of the euro. It was "slightly" because the total for the day the pair rose by only 30 points. Even taking into account the fact that the growth of the euro currency has been going on for two full days already, this is not enough to suggest the beginning of an uptrend. Although prices overcame a moving average line, which changed the current trend for the instrument to ascending. The foreign exchange market is now in serious thought, as there are no reasons for buying euros, except for the failed macroeconomic statistics from the USA. Thus, it is possible that euro sellers will become more active again in the near future. Meanwhile, elections to the European Parliament are over in Europe. There is a high voter turnout, more than 50%. Of Eurosceptics received more than 100 seats in parliament, which is not very good for the prospects of the European Union in the distant future. However, this does not affect the euro rate so far.

Nearest support levels:

S1 - 1.1200

S2 - 1.1169

S3 - 1.1139

Nearest resistance levels:

R1 - 1.1230

R2 - 1.1261

R3 - 1.1292

Trading recommendations:

The EUR/USD currency pair continues its slight upward movement. Thus, it is now recommended to consider buying orders with targets at 1.1230 and 1.1261, but in small lots since both linear regression channels are still downward.

It is recommended to consider selling orders for the euro/dollar pair only after the price is fixed back below the moving with targets 1.1139 and 1.1108.

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 unidirectional movement.

The younger linear regression channel is the violet lines of 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.

Heiken Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company -