EUR / USD. 28th of September. The trading system “Regression channels”. The dollar is growing, Trump is again displeased
The senior channel of linear regression: direction – sideways.
The younger channel of linear regression: the direction is up.
Moving average (20; smoothed) – down.
The EUR / USD currency pair on the last trading day of the week continues its downward movement. There are no signs of the beginning of an upward correction at the moment. The pair overcame Murray’s 7/8 level. The Fed meeting was left behind, only Donald Trump’s comments were left behind him, who was dissatisfied with the fact that the Fed had again tightened monetary policy. Trump is easy to understand. The Fed is not under its control, respectively, in some moments, it even prevents him from managing the country as he sees fit. The increase in the key rate eventually led to the strengthening of the US dollar, with which Trump is struggling, since it is difficult to service a huge public debt with an expensive dollar. On the other hand, economically, everything is fine in the States, and even Trump admits that the rate hike is an indicator of the strength of the US economy. Today in the eurozone, a preliminary value of the consumer price index for September will be published. It is unlikely that traders will respond to this report, as this is not the final value. In the afternoon, we recommend to pay attention to the publication of changes in the levels of income and expenditure of the American population. There are no more important macroeconomic reports for today. As is often the case, on Friday, traders may begin to take profits on positions, which may lead to a purely technical correction.
Nearest support levels:
S1 – 1.1597
S2 – 1.1536
S3 – 1.1475
Nearest resistance levels:
R1 – 1.1658
R2 – 1.1719
R3 – 1.1780
The currency pair EUR / USD continues to move down. Thus, it is now recommended to continue to remain in short positions with the goal of 1.1597. Turning the Heikin Ashi indicator up will serve as a signal for manually closing the shorts.
Overcoming the moving average line will mean a change in the tendency of the instrument to ascending. In this case, it is recommended to open purchase orders for the purpose of Murray level “+1/8” – 1.1780.
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.
Heikin Ashi is an indicator that color bars in blue or purple.