EUR / USD. November 8th. The trading system. “Regression Channels”. Draghi’s speech and the Fed meeting are key events of

4-hour timeframe


Technical details:

The senior linear regression channel: direction – down.

The younger linear regression channel: direction – down.

Moving average (20; smoothed) – sideways.

CCI: 49.7226

The currency pair EUR / USD on Thursday, November 8, began a corrective movement, having failed to overcome the Murray level of “4/8” – 1.1475. At the moment, the price has fallen to the moving average line and has not gone below it yet. We already wrote earlier that the demand for Eurocurrency remains low and the short-term uptrend can be broken at any minute. There are no weighty reasons for the growth of the euro right now. If the pound grows on expectations of an agreement between the EU and the UK, then for the euro, this topic (Brexit) is less important. Therefore, we are now seeing a purely technical correction, and if the pair does not receive strong fundamental support in the near future, then most likely, traders will return to purchases of the American currency. Today is the scheduled speech of the ECB Mario Draghi. It is not yet known what topics will be touched upon in his speech, however, he may potentially report something new both on the topic of Brexit and on the monetary policy of the European Union. Late in the evening, the results of the Fed meeting will be announced. Press conferences this time will not. Only the announcement of the rate (which is likely to remain unchanged) and the accompanying statements of the Fed. Thus, it is the Fed’s comments on monetary policy that will cause more interest, and not the key rate decision.

Nearest support levels:

S1 – 1,1414

S2 – 1.1353

S3 – 1,1292

Nearest resistance levels:

R1 – 1.1475

R2 – 1.1536

R3 – 1.1597

Trading recommendations:

The EUR / USD currency pair has begun to adjust. Thus, to open new long positions with targets at 1.1475 and 1.1536, Heiken Ashi indicator should turn upward, which will mean the completion of the correction.

It is recommended to open sell orders with the target of 1.1353 if traders consolidate below the moving average. In this case, you can expect the resumption of the downward trend in the instrument.

In addition to the technical picture should also take into account 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 junior 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 –