Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader


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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

EUR / USD. 2nd of October. The trading system “Regression channels”. There is no important news, but the dollar is still

October 2, 2018 Analytics


4-hour timeframe


Technical data:

The senior channel of linear regression: direction – sideways.

The younger linear regression channel: direction – up.

Moving average (20; smoothed) – down.

CCI: -109.4216

The currency pair EUR / USD on Tuesday, October 2, continues the downward movement as if nothing had happened. Yesterday was not remarkable in terms of macroeconomic statistics. All published reports had little impact on the market. Nevertheless, today since the morning, the dollar is again in high demand. Thus, from a technical point of view, the new downtrend continues, and the indicator Heikin Ashi clearly signals the absence of any hints of a correction. Today, the only remarkable event of the day will be the speech of Fed Chairman Jerome Powell. However, what can he say about the new monetary policy after the comments at the Fed meeting? Most likely nothing. But traders are not recommended to lose sight of this event. Perhaps, there will be a new information on the topic of a trade war, although this is also not very likely. Thus, most likely, we will not receive any important and new information today, but the US currency is not required now. After the results of the Fed meeting, the dollar continues to be actively strengthened, and the correction should be determined today by turning Heikin Ashi to the top. The calendar of macroeconomic events in the eurozone today is empty.

Nearest support levels:

S1 – 1,1536

S2 – 1,1475

S3 – 1.1414

Nearest resistance levels:

R1 – 1.1597

R2 – 1.1658

R3 – 1.1719

Trading recommendations:

The EUR / USD currency pair continues to move down. Therefore, it is now recommended to continue to remain in shorts with a view to 1.1536. The next target will be the level of 1.1475, and the turn of Heikin Ashi to the top will indicate the turn of the upward correction.

Long positions will become relevant only after the price is fixed above the moving average line. In this case, the uptrend will resume, and the first target for the long positions will be 1.1719.

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 unidirectional movement.

CCI – blue line in the indicator window.

The moving average (20; smoothed) is the blue line on the price chart.

Levels of Murray – multi-colored horizontal stripes.

Heikin Ashi is an indicator that colors bars in blue or purple.

The material has been provided by InstaForex Company – www.instaforex.com


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