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. October 10th. The trading system “Regression Channels”. The pair is adjusted again, but the dollar leadership

October 11, 2018 Analytics


4-hour timeframe


Technical data:

The senior linear regression channel: direction – sideways.

The younger linear regression channel: direction – down.

Moving average (20; smoothed) – down.

CCI: 27.5011

The second trading day of the week was not much different from the first. The currency pair EUR / USD, having no fundamental support, started a new round of corrective movement, stronger than the previous one. Thus, in the coming hours, the tool can work out a moving average line. Around the MA will decide the fate of the euro in the coming days. The rebound from the MA will provoke a resumption of the downward trend, which has weakened a bit in recent days, as there are no new fundamental factors for the growth of the dollar. Moreover, for the first two days of the week, there were no high-profile statements or important macroeconomic reports. On Wednesday, October 10, no important data was planned again in the European Union and the States. The producer price index in the United States has a certain interest in future inflation. However, this is not an indicator that can cause a strong market reaction. Thus, traders can only rely on technical factors when making trading decisions. Moreover, the unconditional leadership of the US dollar after the Fed meeting fades a little. Thus, we expect the Heikin Ashi indicator to turn down to open new short positions. And if traders overcome a moving average line, purchase orders will become relevant.

Nearest support levels:

S1 – 1,1475

S2 – 1,1414

S3 – 1.1353

Nearest resistance levels:

R1 – 1.1536

R2 – 1.1597

R3 – 1.1658

Trading recommendations:

The EUR / USD currency pair is being adjusted once again. Thus, the signal for the opening of new short positions will be the color of 1-2 bars in blue color from the indicator Heikin Ashi. The targets in this case will be the levels of 1.1475 and 1.1414.

It is recommended to open long positions after overcoming the moving average line. In this case, for some time, the trend in the instrument will change to ascending, and the target for the upward movement will be the level of 1.1597.

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 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.

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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