4-hour timeframe
Technical data:
The senior channel of linear regression: direction - sideways.
The younger channel of linear regression: the direction is up.
The moving average (20; flattened) is up.
СCI: 31.2989
The currency pair EUR / USD at the beginning of the trading week shows quite low volatility. Yesterday, traders managed to update the previous local maximum, but continued to move up did not happen. Tomorrow, the results of the Fed meeting will be announced. It is expected that the US regulator will raise the key rate to 2.25%, which may cause an increased demand for the dollar. At the same time, not everything is as obvious as it seems at first glance. Great value, in addition to the bid, will have a press conference with Jerome Powell. In the course of the speech of the head of the Federal Reserve, markets can find out details in changes in monetary policy and the US economy. We also believe that the US dollar now does not possess the necessary attractiveness in the eyes of traders, therefore, even if the key rate of strong growth of the currency is raised, the US may not be. The markets are still focused on the trade war with China and the possible introduction of new duties on Chinese imports. If this happens, then all imports from China will be taxed. If a month ago, traders regarded this as a signal to buy dollars, now everything has changed dramatically. The US economy will also suffer from this trade war, so the dollar is very difficult to show growth in recent weeks.
Nearest support levels:
S1 = 1.1719
S2 = 1.1658
S3 - 1,1597
Nearest resistance levels:
R1 = 1.1780
R2 - 1.1841
Trading recommendations:
The currency pair EUR / USD continues to be corrected. The color of 1-2 bars by the indicator of Heikin Ashi in the purple color will again signal the completion of the correction loop and will serve as a signal for opening new purchases with targets for the Murray levels of 1.1780 and 1.1841.
Orders for sale will become relevant after fixing the price below the moving average line. In this case, the trend for the instrument will change to the descending one, and the goal for the shorts will be the level of 1.1658.
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.