EUR / USD. March 1. The trading system. "Regression Channels". The euro will be supported if inflation accelerates

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - sideways.

CCI: 29.0553

The currency pair EUR / USD on Friday, March 1, again corrected to the moving average line. All movements on the instrument are still of low volatility. Thus, it can be noted that in the instrument as a whole, nothing changes. On the last trading day of the working week, it is planned to publish preliminary values of inflation in the European Union for February and the unemployment rate. Unemployment is expected to be 7.9%, while the CPI will accelerate to 1.5%. We recall that, in principle, any value below the target 2% can be considered a weak indicator. However, if there is an unexpected stronger acceleration of inflation, this may support the euro currency. In America, data on changes in personal income and expenditures of the American population, as well as indexes of business activity in the manufacturing sector Markit and ISM will be published today. Thus, the big news today will be, above all, to the actual values on the line with the forecasts, then we can expect to gain volatility. Also, the inflation rate is important from the point of view of understanding the general economic situation in the European Union. Recently, more and more talk that the EU is slipping into recession, and the uncertainty with Brexit only puts more pressure on this situation. In part, macroeconomic indicators confirm these concerns.

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 begun a new round of correction, as indicated by the Heikin Ashi indicator. Thus, it will be possible to open new long positions after turning this indicator to the top with the target of 1.1414, which has already been tested.

Sell positions can be considered after the price is fixed below moving. In this case, the trend in the instrument will change to downward, and the first goal will be the level of 1.1292.

In addition to the technical picture 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 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 -