4-hour timeframe
Technical data:
The senior channel of linear regression: direction - down.
The younger channel of linear regression: direction - down.
Moving average (20; flattened) - sideways.
СCI: 41.0625
On August 7, the currency pair EUR / USD was adjusted to the moving average line and even consolidated slightly above it. The calendar of macroeconomic events was completely empty yesterday. It will be the same today. But, as we see, traders use the absence of news as an excuse to fix profits on short positions. Near the moving average, a downward turn may occur, and the downtrend will resume. No news on the topic of trade war between the states and China. The only thing you can pay attention to is that Trump can hold a second meeting with Kim Jong-un and believes that the DPRK has not fulfilled all the necessary work on denuclearization. About lifting of sanctions from North Korea while speech too does not go. But this is all secondary information. There were no really important data in the last few days at the disposal of traders. Therefore, when making trade decisions, it remains to rely only on technical factors. Thus, turning the indicator of Heikin Ashi down when the price is lower than the moving average will be sufficient for the resumption of trading on a decline.
Nearest support levels:
S1 - 1.1597
S2 - 1.1536
S3 - 1.1475
Nearest resistance levels:
R1 = 1.1658
R2 = 1.1719
R3 = 1.1780
Trading recommendations:
The currency pair EUR / USD continues to be corrected. Removal from the moving or coloring of 1-2 bars in blue with a price below the removals will be a signal for new short positions with the goal of Murray level "1/8" - 1,1536.
Buy-positions are recommended to open with a target of 1,1658, as the bulls managed to overcome the moving average line. However, shorts should be opened with small lots and with a Stop Loss order, as the breakdown may be false.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper channel of linear regression is the blue lines of unidirectional motion.
The lowest linear regression channel is the violet lines of unidirectional motion.
CCI - the blue line in the indicator window.
Moving average (20; smoothed) - the blue line on the price chart.
Levels of Murray - multi-colored horizontal stripes.
Heikin Ashi is an indicator that color bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com