EUR / USD. March 11. The trading system. "Regression Channels". The euro rose slightly but is unlikely to break the downward

4-hour timeframe


Technical details:

The senior linear regression channel: direction - down.

The junior linear regression channel: direction - sideways.

Moving average (20; smoothed) - down.

CCI: -172.2114

The currency pair EUR / USD on Monday, March 11, began an upward correction, which was signaled by the indicator Heikin Ashi. The new trading week has begun, but the EUR / USD pair will obviously be in the shadow of the GBP / USD pair during it. This week in the UK, there will be several votes on Brexit options, so it will be the British pound that will focus the attention of traders. As for the EUR / USD pair, last week, it broke through the most important support area of 1.1250 - 1.1290 and now, in technical terms, nothing prevents it from continuing to move down. As we understood from the last meeting of the ECB, the regulator does not intend to take any tightening measures in 2019, which means that the EU and the US will continue to skew the monetary policies. On this basis, a downward Heikin Ashi indicator will signal a resumption of a downtrend. Today in the United States, reports on retail sales for January will be published. After the failure of data in December, all derivatives of the indicator is now expected to increase. Thus, the US dollar today may receive some fundamental support. No macroeconomic publications are planned for today in the European Union.

Nearest support levels:

S1 - 1.1230

S2 - 1.1169

S3 - 1.1108

Nearest resistance levels:

R1 - 1.1292

R2 - 1.1353

R3 - 1.1414

Trading recommendations:

The EUR / USD currency pair has begun to adjust. Thus, it is now recommended to wait for the completion of the correction and resume trading for a fall with the goal of Murray level "-1/8" - 1.1169.

Buy positions can be viewed after the price is fixed above the moving average line. In this case, the long positions will become relevant with the first goal of 1.1353.

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 -