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. Nov. 1. The trading system. “Regression Channels”. With difficulty, the Eurocurrency began to be adjusted

November 2, 2018 Analytics


4-hour timeframe


Technical details:

The senior linear regression channel: direction – down.

The younger linear regression channel: direction – down.

Moving average (20; smoothed) – down.

CCI: -72.9185

The EUR / USD currency pair on Thursday, November 1, with a grief in half, has begun a very weak upward correction for the time being, the potential of which is limited by the moving average line. It is not yet clear whether the pair has enough strength and the desire of the bulls to overcome the moving. Based on the technical and fundamental picture of recent weeks, there are few chances for a stronger correction. However, if the bears are already “saturated” and do not see new reasons for selling the pair, then a purely technical correction will begin. Fortunately, it will be quite easy to determine, by fixing the pair above the moving average. In the meantime, this did not happen. There is a downward trend that may resume at any time. To date, no important macroeconomic report has been planned in the European Union. The US calendar contains several indices of business activity in the areas of services and production from Markit and ISM. It is unlikely that these reports will have a strong impact on the market, but they may cause a slight reaction. Also today will be a meeting of the Bank of England, and after it, the speech of Mark Carney. If in his speech he touches the subject of Brexit, then the reaction to his words may be followed by the EUR / USD pair. We still believe that the euro now also depends on the results of the Brexit negotiations.

Nearest support levels:

S1 – 1,1292

S2 – 1.1230

S3 – 1.1169

Nearest resistance levels:

R1 – 1.1353

R2 – 1.1414

R3 – 1.1475

Trading recommendations:

The EUR / USD currency pair has begun a round of correction. The price rebound from the moving average line may provoke a resumption of the downward movement. The turn down of the Heikin Ashi will also signal the opening of new short positions with a target of 1.1292.

It is recommended to open long positions with targets of 1.1414 and 1.1475, if the pair succeeds in overcoming the moving average line. In this case, the trend will change to ascending, at least for a short time.

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 – www.instaforex.com


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