4-hour timeframe
Technical data:
Senior channel of linear regression: direction - down.
The younger channel of linear regression: direction - down.
The moving average (20; flattened) is up.
СCI: 124.2626
On August 27, the EUR/USD currency pair pushed off the level of Murray "6/8" and resumed the upward movement, breaking the level of Murray "7/8" at 1.1658. On the first trading day of the week, as often happens, there was no important and interesting news. Also, no single macroeconomic report was published. Thus, the euro currency quietly continued its corrective growth against the US dollar and traders continue to expect new information from Trump. From a technical point of view, the euro is growing and can continue its strengthening. Traders can only follow the trend. Trying to guess the reversal of the pair down does not make any sense while no one knows when Trump will again make loud statements, which will excite the market. Therefore, it is recommended to wait until the moving average line is overcome to be able to consider short positions. Until then, trade on the rise continues. On Tuesday, August 28, the calendar of macroeconomic developments in Europe and the US is still empty. Thus, market participants will still have to rely on technical factors when making trade decisions.
Nearest support levels:
S1 = 1.1658
S2 - 1.1597
S3 - 1.1536
Nearest resistance levels:
R1 = 1.1719
R2 = 1.1780
R3 = 1.1841
Trading recommendations:
The EUR/USD currency pair continues its upward movement. Thus, it is recommended for today to remain in the longs with the targets of 1.1719 and 1.1780 before the turn of the Heiken-Ashi indicator below, which will mean a downward correction loop.
Sell-positions are recommended to be considered only after overcoming of the movers. In this case, the trend on the instrument will change to a descending one, and the bears will be able to start a new downward trend.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The upper channel of linear regression is the blue lines of unidirectional motion.
The lowest linear regression channel is the violet lines of unidirectional motion.
CCI - the blue line in the indicator window.
Moving average (20; smoothed) - the blue line on the price chart.
Levels of Murray - multi-colored horizontal stripes.
Heiken Ashi is an indicator that colors bars in blue or purple.
