4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - sideways.
CCI: -15.8350
The currency pair EUR / USD on Tuesday, December 11, corrected to the moving average line and Murray's level of "2/8" - 1.1353. Formally, the MA has already been overcome, but in order to establish the fact of a change in the tendency of the instrument to the downward one, we recommend waiting for Murray to overcome the level of 2/8. If this does not happen, then the upward trend, very weak, can resume. The fundamental reasons for the decline of the European currency were not particularly needed the day before. If you look closely at the chart, it becomes clear that this kind of correction often takes place in recent days. Of course, it can also be attributed to the reduction of the euro by the cancellation by Theresa May of a parliamentary vote on her Brexit bill. As we have already written more than once, the whole subject to Brexit has far less impact on the euro than on the pound sterling. Today, neither in the States nor in the European Union are any important macroeconomic publications planned. Thus, traders will be deprived of any fundamental "infusions". Of course, it is possible to receive unplanned, unexpected information, for example from Trump or one of the EU leaders, but this is unlikely. Thus, from a complex point of view, the Eurocurrency today has a good chance of resuming the upward movement.
Nearest support levels:
S1 - 1.1353
S2 - 1.1292
S3 - 1.1230
Nearest resistance levels:
R1 - 1,1414
R2 - 1.1475
R3 - 1.1536
Trading recommendations:
The EUR / USD currency pair has adjusted to the moving average. A rebound in the price from the level of 1.1353 with the fixation above the moving will serve as a signal to open new long positions with the target of 1.1414.
Sell orders are recommended to be considered after the price is fixed below the moving average line and the level of 1.1353. In this case, there will be more confident in a change in the trend of the instrument to a downward one.
In addition to the technical picture, you should also consider 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