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: 27.2580
The EUR / USD currency pair on the last trading day of last week showed a diversified movement based on a large amount of macroeconomic data. First, the preliminary value of inflation in the Eurozone for December was published. The CPI was 1.6%, which is below the forecast of 1.8% and lower than the previous value of 1.9%. Thus, despite the correction to the moving average, the Euro currency came under pressure in the morning. But immediately, it is worth noting that under rather weak pressure. Further, secondly, all macroeconomic statistics from the States, except for unemployment, turned out to be impressive. The number of NonFarm Payrolls was 312 thousand, which exceeded the forecast by almost 2 times, the average hourly wage increased by 3.2%, which is also higher than the forecast. The index of business activity in the services sector Markit similarly turned out to be higher than the expectations of experts. With all this, the unemployment rate unexpectedly rose from 3.7% to 3.9%. The US dollar on this news rose first to 1.1350, that is, by about 50 points, after which it fell under sales again. The question remains: have the traders been so impressed with the unemployment rate to ignore NonFarm Payrolls? If yes, then everything is more or less logical. If not, then most likely, the hegemony of the US dollar is coming to an end, since it was the European currency that rose on strong news from America and the weak from Europe.
Nearest support levels:
S1 - 1.1414
S2 - 1.1383
S3 - 1.1353
Nearest resistance levels:
R1 - 1.1444
R2 - 1.1475
R3 - 1.1505
Trading recommendations:
The EUR / USD currency pair has overcome the moving. Thus, it is now recommended to trade on the increase with the objectives of 1.1444 and 1.1475. The pair still remains inside the wide side channel, so target levels limit the growth potential of the Euro currency.
Orders for sale in small lots can be considered no earlier than fixing the pair below the moving average line. In this case, the US dollar will get a chance to strengthen to the levels of 1.1353 and 1.1322.
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