4-hour timeframe
Technical data:
The senior channel of linear regression: direction - down.
The younger channel of linear regression: the direction is up.
The moving average (20; flattened) is up.
СCI: 45.9036
The currency pair EUR / USD on September 19 for the eighth time failed to overcome the zone of 1.1720 - 1.1750. Again, there was a rebound from the level of 1.1720 and the price dropped to the moving average line. At the same time, below the movers, traders were also unable to gain a foothold. Meanwhile, it became known that China is imposing retaliatory sanctions against America in the amount of about $ 60 billion. Thus, now all imports from the States fall under duties. Now, the next step is for Trump. He promised to introduce new duties totaling $ 267 billion, if Beijing continues to "heat up the situation." Beijing responded. Given the reinforced concrete level of 1.1719 and the escalation of the trade conflict between Washington and Beijing, the downward movement is preferable. However, as we already wrote in yesterday's reviews, it seems that traders have ceased to believe that the trade war will benefit the US. Thus, the market is now at a crossroads. On the one hand, there is no one who wants to buy the dollar yet. On the other hand, the upside does not allow the level of 1.1720. Today in Europe, ECB President Mario Draghi will deliver a speech. Theoretically, he can touch on the topic of monetary policy, which can affect the movement of the currency pair. In addition, we continue to monitor any messages from Trump, since now, logically, he must announce the introduction of new duties against China.
Nearest support levels:
S1 = 1.1658
S2 - 1,1597
S3 - 1.1536
Nearest resistance levels:
R1 = 1.1719
R2 = 1,1780
R3 = 1.1841
Trading recommendations:
The currency pair EUR / USD once again worked at 1.1719 level and again rebounded from it. The correction has already ended, so now, the relevance of the long lines with a target of 1.1719. The color of 1-2 bars with the indicator of Heikin Ashi in purple will confirm the intention of the pair to return to 1.1719.
Short positions will become relevant after fixing the price below the moving average. In this case, the tendency for the instrument to change to a descending one, and the target for the downward movement will be the level of Murray "6/8" - 1.1597.
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