4-hour timeframe
Technical data:
The senior channel of linear regression: direction - down.
The younger channel of linear regression: direction - down.
The moving average (20; flattened) is up.
СCI: 126.1922
Currency pair EUR / USD on July 4 most of the day stood in one place, as yesterday in America was Independence Day and financial markets were closed. However, even today the European currency has soared. There were no good reasons for this, so we associate this fact with the return to the markets of a large number of traders after the weekend. Today, no important information is expected from the European Union, but in the United States, there will be something to pay attention to. First, this is the evening protocol of the last meeting of the Fed. It is unlikely that there will be radically new and important information, but it will still be of interest to market participants. Secondly, today there will be indices of business activity in the spheres of services and production and changes in the number of employed in the private sector from ADP. These reports can have a significant impact on the movement of the currency pair, especially the employment report. Also, do not forget to keep track of all messages coming from the White House, since they are now of priority importance for the vast majority of traders. From a technical point of view, the short-term upward trend remains, but still looks nothing more than a correction after a long-term strengthening of the US currency.
Nearest support levels:
S1 = 1.1658
S2 - 1,1597
S3 - 1.1536
Nearest resistance levels:
R1 = 1.1719
R2 = 1,1780
R3 = 1.1841
Trading recommendations:
The currency pair EUR / USD resumed its upward movement, as indicated by the indicator of Heikin Ashi. Thus, now it is recommended to stay in the longs with a target of 1,1719. In the second half of the day, a downward correction is very likely due to macroeconomic reports in the US. Technically, it can be determined by turning Heikin Ashi down.
It is recommended to open the sell orders not earlier than securing the pair below the moving average line with the goal of Murray level "2/8" - 1,1597. In this case, the chances of renewing the "dollar" trend on the instrument will increase.
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.