EUR/USD. March 26. The trading system. "Regression Channels". Euro is ready for a new fall on the basis of "technology"

4-hour timeframe


Technical details:

The upper linear regression channel: direction - down.

The lower linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -80.7398

On Tuesday, March 26, the EUR/USD currency pair corrected almost to the moving average line and resume the downward movement. At least this is what the trading system shows. The second closed bar of the blue color indicator Heikin Ashi will signal a downward reversal. Important macroeconomic reports today from Europe are not expected. Information on the housing price index, the number of building permits received and the level of consumer confidence will come from America. However, these reports are far from the most important, so the reaction of traders to them can be very restrained or absent altogether. Thus, the foreground will remain the technical factors that so far predict the Euro currency another fall. Although, as we said earlier, from a fundamental point of view, the confrontation between the dollar and the euro has leveled off due to the Fed's refusal from the course of systematic monetary tightening. The advantage still remains with the US currency, but it is not as clear as it was before. Therefore, taking into account the fact that over the past few months, the pair has not been able to build an uptrend or overcome 1.1200, there are more chances now to form an uptrend.

Nearest support levels:

S1 - 1.1292

S2 - 1.1261

S3 - 1.1230

Nearest resistance levels:

R1 - 1.1322

R2 - 1.1353

R3 - 1.1383

Trading recommendations:

The EUR/USD currency pair may resume a downward movement. Thus, it is now recommended to consider sell orders with targets at 1.1292 and 1.1261. Turning the Heikin Ashi indicator down will signal the opening of the short positions.

Buy positions can be considered no earlier than fixing the pair back above the moving average line with targets at 1.1353 and 1.1383 since the trend, in this case, will change to ascending.

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 -