EUR / USD. January 15. The trading system. “Regression Channels”. All focus on the UK
January 15, 2019 8:21 am
4-hour timeframe
Technical details:
The senior linear regression channel: direction – sideways.
The younger linear regression channel: direction – up.
Moving average (20; smoothed) – sideways.
CCI: -23.4851
The currency pair EUR / USD on Monday, January 14, was trading near the moving average line. There were no important macroeconomic publications that day. Moreover, the markets were clearly hiding in anticipation of the voting in the British Parliament under the plan of Theresa May. Today is the day that will determine the future fate of relations between the EU and the UK. Markets still do not believe that the parliament will take the initiative of Theresa May. May herself continues to exert pressure on parliament with regular speeches with warnings of almost apocalypse if parliament rejects its proposal. It can be understood; giving up Brexit would mean the end of her political career. What is waiting for the euro currency today and in the near future? We believe that the reaction to the Brexit vote today will certainly follow, but in the longer term, the effect of today will be leveled. Still, for the European Union, Brexit is of lesser importance. In the evening, Mario Draghi, the head of the ECB, will also give a talk, which can also potentially be very interesting and can influence the mood of traders. From a technical point of view, the upward trend remains on the instrument, as prices continue to be located slightly above the moving average.
Nearest support levels:
S1 – 1.1475
S2 – 1.1414
S3 – 1.1353
Nearest resistance levels:
R1 – 1.1536
R2 – 1.1597
R3 – 1.1658
Trading recommendations:
The currency pair EUR / USD is trying to resume an upward movement, as indicated by the indicator Heikin Ashi. Thus, today it is recommended to consider long positions with a target of 1.1536. However, today there may be sharp reversals and an increase in volatility due to Brexit voting.
Short positions can be viewed after fixing the price below the moving average with the target of 1.1414. However, precautions today should be. Therefore, it is recommended not to forget about stops and trade in small lots.
In addition to the technical picture, you should also consider 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 – www.instaforex.com
4-hour timeframe
Technical details:
The senior linear regression channel: direction – sideways.
The younger linear regression channel: direction – up.
Moving average (20; smoothed) – sideways.
CCI: -23.4851
The currency pair EUR / USD on Monday, January 14, was trading near the moving average line. There were no important macroeconomic publications that day. Moreover, the markets were clearly hiding in anticipation of the voting in the British Parliament under the plan of Theresa May. Today is the day that will determine the future fate of relations between the EU and the UK. Markets still do not believe that the parliament will take the initiative of Theresa May. May herself continues to exert pressure on parliament with regular speeches with warnings of almost apocalypse if parliament rejects its proposal. It can be understood; giving up Brexit would mean the end of her political career. What is waiting for the euro currency today and in the near future? We believe that the reaction to the Brexit vote today will certainly follow, but in the longer term, the effect of today will be leveled. Still, for the European Union, Brexit is of lesser importance. In the evening, Mario Draghi, the head of the ECB, will also give a talk, which can also potentially be very interesting and can influence the mood of traders. From a technical point of view, the upward trend remains on the instrument, as prices continue to be located slightly above the moving average.
Nearest support levels:
S1 – 1.1475
S2 – 1.1414
S3 – 1.1353
Nearest resistance levels:
R1 – 1.1536
R2 – 1.1597
R3 – 1.1658
Trading recommendations:
The currency pair EUR / USD is trying to resume an upward movement, as indicated by the indicator Heikin Ashi. Thus, today it is recommended to consider long positions with a target of 1.1536. However, today there may be sharp reversals and an increase in volatility due to Brexit voting.
Short positions can be viewed after fixing the price below the moving average with the target of 1.1414. However, precautions today should be. Therefore, it is recommended not to forget about stops and trade in small lots.
In addition to the technical picture, you should also consider 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 – www.instaforex.com
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