4-hour timeframe
Technical data:
The upper linear regression channel: direction – sideways.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – up.
CCI: 101.5565
On Tuesday, August 6, the correction for the EUR/USD pair ended, and on Wednesday, August 7, began moving up. The calendar of macroeconomic events remains empty, so we continue to insist that the current strengthening of the euro is purely technical. The trade war between China and the United States itself has a very indirect impact on the euro/dollar currency pair. Other pairs and instruments react better. The thing is that traders are more interested in specific macroeconomic "figures", the rhetoric of the heads of the Central Bank, the actions of the Central Bank, and not the constant squabbles and mutual threats between Beijing and Washington. This is certainly a very interesting topic and in the future, it can lead to serious deterioration of the "numbers" in China and in the States. But so far, new duties against China have not been introduced (they will start operating on September 1), and the parties continue to threaten each other and accuse each other of non-fulfillment of obligations, unfair play and so on. To date, no important macroeconomic statistics have been planned. Thus, traders will again rely on technical factors when making trading decisions, which now speak in favor of the continued growth of the currency of the European Union, the indicator Heiken Ashi turned up. However, in our humble opinion, the probability of the pair leaving above 1.1283 is extremely low.
Nearest support levels:
S1 – 1.1169
S2 – 1.1108
S3 – 1.1047
Nearest resistance levels:
R1 – 1.1230
R2 – 1.1292
R3 – 1.1353
Trading recommendations:
The EUR/USD currency pair resumed its upward movement on August 6. Therefore, it is recommended to buy the pair EUR/USD with the targets of 1.1230 1.1292 before a new turn of the Heiken Ashi indicator down.
It will be possible to sell the euro/dollar not earlier than the reverse consolidation of the pair below the moving average line with the goals of Murray levels of 1.1108 and 1.1047. In this case, the euro will return to the downward trend.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of illustrations:
The upper linear regression channel – the blue line of the unidirectional movement.
The lower linear regression channel – the purple line of the unidirectional movement.
CCI – the blue line in the indicator window.
The moving average (20; smoothed) – blue line on the price chart.
Murray levels – multi-colored horizontal stripes.
Haiken Ashi is an indicator that colors bars in blue or purple.