4-hour timeframe
Technical data:
Major channel linear regression: upward direction.
Minor channel linear regression: upward direction.
Moving average (20; smoothed) - sideways.
SCI: -36.1643
Explanation:
The EUR/USD in the foreign exchange market on July 14, adjusted to its moving average but could hold a consolidation below it. The major channel is directed upwards indicating an upward movement towards a global trend. The minor channel is also directed upwards which means an upward trend in the short term. At the moment, the price remains above the level of Murray's "6/8" as well as the moving average. Therefore, the target for the upward movement is the Murray level of "8/8" at 1.1475, which has already been achieved. In the case of exceeding this target, the new target will be Murray's level "+1/8" at 1.1536. The moving average turned sideways, and the price is near it, so in the near future, the upward movement will take place. The Heiken Ashi last bars were in blue which implies a correction. When the indicator turned upward, this means a downward correction and opening of long positions are not recommended. Short positions can be considered only below MA and a reversal in any of the channels. The CCI indicator is near the level 0 which indicates the absence of any overbought and oversold currency pair.
The nearest support levels:
S1 - 1,1353
S2 - 1,1292
S3 - 1,1230
The nearest resistance levels:
R1 - 1,1414
R2 - 1,1475
R3 - 1,1536
Trading recommendations:
Having considered the EUR/USD pair, it can be concluded that long positions can be considered towards the target of 1.1475 level. The second target is 1.1536 level. The Stop-loss should be placed below the moving average and adjust the S/L as the it moves up. When 70 - 90 points have been gained, the stop-loss can be transferred to the breakeven. It is recommended to open new purchase orders in case of 1-2 bars are colored in purple (depending on the size) of the Heiken Ashi indicator (one such bar already exists) if the price is higher than the moving average. The Take Profit orders can be set slightly below the target levels. Short positions are not relevant now.
Aside from the technical aspect, traders should also consider the fundamental data and their scheduled releases.
Explanation of illustration:
Major channel linear regression - blue lines in unidirectional movement.
Minor channel linear regression - purple line in unidirectional movement.
CCI - blue line in the indicator window.
Moving average (20; smoothed) - blue line on the chart.
Murray levels - multicolored horizontal stripes.
Heiken Ashi - the indicator bars coloring in blue or purple.
