4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - sideways.
CCI: -44.8821
The EUR / USD currency pair on Friday, January 4, adjusted to the moving average line and failed to consolidate above it. Thus, the pair has every chance of resuming the downward movement within the wide side channel with a minimum upward slope. A large number of macroeconomic reports are scheduled for the last trading day of the week. In the Eurozone today released a preliminary value of the consumer price index for December and is expected to drop to 1.8%. Thus, if the forecast comes true, then the final value of inflation may slow down, which is a negative factor for the euro. The main macroeconomic information comes from the States today. There will be a report today NonFarm Payrolls, the number of new jobs created contributed to the agricultural sector, unemployment, changes in average wages, indexes of business activity in the services sector and production of Markit, and also the speech of Fed Chairman Jerome Powell. The forecasts for these reports can be called fairly neutral, the ratio of the forecasts with the real value will be more important, rather than the forecasts themselves. Based on the size of this package of macroeconomic information, today increased volatility is expected for all instruments related to the US dollar, including the EUR / USD pair.
Nearest support levels:
S1 - 1.1383
S2 - 1.1353
S3 - 1.1322
Nearest resistance levels:
R1 - 1.1414
R2 - 1.1444
R3 - 1.1475
Trading recommendations:
The EUR / USD currency pair has worked moving. Thus, now remain relevant short positions with targets of 1.1353 and 1.1322. A signal to the opening of the shorts will turn the Heikin Ashi indicator down.
Buy orders are recommended to be considered no earlier than fixing the price above the moving and Murray level of "6/8" - 1.1414. In this case, the bulls will have the opportunity to develop their success with the objectives of 1.1444 and 1.1475.
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.
