EUR/USD. March 27. The trading system. "Regression Channels". Euro falls again, now on a clean "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: -129.6071

On Wednesday, March 27, the EUR/USD currency pair resumed its downward movement, as we expected the day before. In the first two trading days of the week for the EUR/USD, there was no single significant news, not a single important macroeconomic report. Thus, traders could only rely on technical factors when making trading decisions. Today, representatives of the ECB will give speeches all day long, and a parade of performances with Mario Draghi will begin. It is to his speech that most attention will be riveted. Potentially, Mario Draghi could touch on monetary policy or America's claims to the EU. That is, it can potentially provide important information to the market that will trigger a reaction. But from America today, only a report on the trade balance for January is expected, which is unlikely to interest market participants. Thus, if Draghi does not tell the market anything of interest, then today technical factors will remain in the foreground. So the indicator Heikin Ashi will show intraday turns. Despite the fact that, in our opinion, the position of the euro has improved in the confrontation between the euro and the dollar, we should not rely on an uptrend before concrete technical grounds for this are obtained.

Nearest support levels:

S1 - 1.1261

S2 - 1.1230

S3 - 1.1200

Nearest resistance levels:

R1 - 1.1292

R2 - 1.1322

R3 - 1.1353

Trading recommendations:

The EUR/USD currency pair has resumed its downward movement. Thus, it is now recommended to consider sell orders with targets at 1.1261 and 1.1230. A reversal of the Heikin Ashi indicator to the top will indicate a round of upward correction.

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 upper linear regression channel is the blue lines of the unidirectional movement.

The lower 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 -