4 hour timeframe
Technical details:
Senior linear regression channel: direction - down.
Younger linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
SSY: 29.4535
Monday, May 27, ended logically enough - a downward correction to the moving average line. No important macroeconomic reports were published in the States or the European Union on this day, so the traders had nothing to respond to. But today will be extremely important, from our point of view, to determine the future trend for the euro/dollar pair. Since no macroeconomic statistics are also planned for today, traders will rely on their own trading forecasts for trading techniques when making trading decisions. And, accordingly, if the EUR / USD pair manages to overcome the moving today, this will mean that traders are still looking to the downside. Based on this, it will be possible to expect not only the resumption of the downward trend, which still persists in 2019 without any complaints, but also updates the latest prices lows. The price rebound from the MA can provoke a resumption of the upward movement, however, traders now do not clearly want to buy the pair, especially without fundamental support. On the other hand, bulls remain extremely weak, and the market is clearly not set up to purchase Eurocurrency in a longer term than intraday. Thus, there is no new information on the trade wars between the United States, EU and China.
Nearest support levels:
S1 - 1.1169
S2 - 1.1139
S3 - 1.1108
Nearest resistance levels:
R1 - 1,1200
R2 - 1.1230
R3 - 1.1261
Trading recommendations:
The EUR / USD currency pair has begun to be adjusted, and this correction may develop into a full-fledged movement downwards. Thus, buy orders with targets at 1.1230 and 1.1261, but in small lots, are still relevant, since both linear regression channels are still directed downward, and only in the case of a rebound, the price will move.
It is recommended to consider selling orders for the euro / dollar pair only after fixing the price below the moving with targets 1.1139 and 1.1108.
In addition to the technical picture, we 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 - www.instaforex.com