EUR / USD. October 9th. The trading system “Regression Channels”. Another weak correction round for the euro
The senior linear regression channel: direction – sideways.
The younger linear regression channel: direction – down.
Moving average (20; smoothed) – down.
Despite the fact that on the first working day of the week, no important macroeconomic data was available to traders, the day ended with the growth of the American currency. Only tonight, the pair started a kind of upward correction, but even before the moving prices, the quotes are still far away. In fundamental terms, the second trading day of the week will be a little different from the first. No important macroeconomic reports for today are planned either in the States or in the European Union. Nevertheless, yesterday, we already noted that the most important factor pushing the US dollar up is the general predisposition of market participants to purchases of the American currency. Thus, any signal from the Heikin Ashi indicator for sale will potentially mean a significant new decline in the currency pair. The purple bars of the Heikin Ashi indicator will indicate the pair has entered a correction. However, as long as the price remains below the moving average, the downward trend in the instrument will remain.
Nearest support levels:
S1 – 1,1475
S2 – 1,1414
S3 – 1.1353
Nearest resistance levels:
R1 – 1.1536
R2 – 1.1597
R3 – 1.1658
The EUR / USD currency pair has begun a new round of corrective movement towards the moving average. Thus, traders are advised to wait for Heikin Ashi to turn down to open new short positions with the first goal of Murray level “3/8” – 1.1414.
It is recommended to open long positions after participants have overcome the moving average. In this case, the trend in the instrument will be upward, and the target for the long positions 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 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.
Murray levels – multi-colored horizontal stripes.
Heikin Ashi is an indicator that colors bars in blue or purple.