4 hour timeframe
Technical details:
Higher linear regression channel: direction - down.
Lower linear regression channel: direction - down.
Moving average (20; smoothed) - sideways.
CCI: 11.7608
On Wednesday, November 21, the EUR / USD currency pair continues to be adjusted and has already worked out a moving average line. From a technical point of view, a rebound in the price from the MA can trigger a resumption of the upward movement. However, there are several technical factors that do not speak in favor of the euro. First, a pair of Murray's "4/8" point and perfectly worked out at 1.1475 and immediately bounced off him, which means a large number of pending sell orders near this level. Secondly, the level of 1.1475 is located slightly below the previous local maximum, and the lack of its update also speaks in favor of the downward movement. The third factor is fundamental. There is still no new information on Brexit, but there are a lot of negative rumors. Also, this can be attributed Italy's refusal from the requirements of the European Commission to bring the budget for 2019 in line with EU standards. Thus, we believe that the pair is more likely to overcome the moving average and continue the downward movement. Today, report on orders for durable goods from the United States will be published. The forecast is very weak and if the real value is higher than the forecast (which is not difficult), then it can be supported by the American currency.
Nearest support levels:
S1 - 1.1353
S2 - 1.1292
S3 - 1.1230
Nearest resistance levels:
R1 - 1.1414
R2 - 1.1475
R3 - 1.1536
Trading recommendations:
The EUR / USD currency pair is in the correction. The rebound of prices from moving with a reversal of Heiken Ashi upward will be a signal to open new long positions with a target of 1.1475.
Sell positions can be considered after traders overcome the moving average line. In this case, the initiative on the instrument will pass into the hands of bears and the target for the downward movement will be the level 1.1292.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanations for illustrations:
The higher linear regression channel is the blue lines of unidirectional movement.
The lower linear regression channel is the purple lines of 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.
Heiken Ashi is an indicator that colors bars in blue or purple.
