4-hour timeframe
Technical details:
The senior linear regression channel: direction - down.
The junior linear regression channel: direction - sideways.
Moving average (20; smoothed) - up.
CCI: 95.6015
The EUR / USD currency pair in the evening trading on Wednesday, December 19, declined, but not too much. Thus, the market's reaction to the Fed's key rate increase of 0.25 points was very restrained. In principle, such a decision by the Fed was expected, despite Trump's appeals not to tighten monetary policy. Therefore, we did not see a strong strengthening of the American currency. This is a very good moment for both the euro and the pound sterling. Frankly "pigeon" rhetoric, we also did not hear. Jerome Powell announced two rate increases for 2019 and once again noted that the Fed has reached the lower limit of the rate range, which is considered neutral. Powell also noted that at the moment, the US economy is doing well and does not need any incentives. On the penultimate trading day of the week, neither in the States nor in Europe are there any important macroeconomic publications. In the meantime, from a technical point of view, the pair ideally worked out the zone of 1.1420 - 1.1440 and could not get higher than it. Thus, it is now possible for the pair to decline below the moving average line, which will change the trend to a downward one. At the same time, we pay attention once again that a wide flat is now possible. The lower limit of the side corridor is 1.1270.
Nearest support levels:
S1 - 1.1383
S2 - 1.1353
S3 - 1.1322
Nearest resistance levels:
R1 - 1.1414
R2 - 1.1444
R3 - 1.1475
Trading recommendations:
The EUR / USD currency pair has adjusted to the moving average. A reversal of the Heikin Ashi indicator to the top will signal the opening of new long positions with a target of 1.1440. This level will provide serious resistance to the pair.
It is recommended to open a sell position no earlier than a reverse price fixing below the moving with targets of 1.1322 and 1.1292. However, so far there are no prerequisites for overcoming the moving average line.
In addition to the technical picture, you should also consider 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 younger 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.