4-hour timeframe

Technical data:

The upper channel of linear regression: direction – up.

The lower channel of linear regression: direction – down.

The moving average (20; smoothed) – sideways.

CCI: 84.0050

Last week, the EUR/USD pair ended rather boring. On Friday, July 12, important macroeconomic reports were not published; there were no important speeches by top leaders of the United States and the European Union. Jerome Powell's two speeches in Congress, of course, firstly, brought the Fed closer to reducing the key rate, and secondly, given the market even more clarity on that issue. However, at the moment, we cannot say that traders, in connection with the information received, are ready to sell the US dollar. We have said more than once that despite the possible reduction in the rate in America, it will still remain higher than that of the EU or the UK. And given the fact that the ECB can also reduce the rate in the near future, the balance between the monetary policies of the bloc and the States may not change. Because of this, the optimism of the euro bulls is not very much, and the pair can return to the downward channel in the near future. On the first trading day of the week, traders do not expect anything interesting, as the calendar of macroeconomic events is empty. The euro/dollar pair is fixed above the moving average line, but cannot yet develop its success. Two channels of linear regression are directed in different directions.

Nearest support levels:

S1 – 1.1230

S2 – 1.1169

S3 – 1.1108

Nearest resistance levels:

R1 – 1.1292

R2 – 1.1353

R3 – 1.1414

Trading recommendations:

The EUR/USD currency pair is fixed above the moving average. Now, therefore, it is recommended to consider the purchase of the euro with the targets at 1.1292 and 1.1353 before the reversal of the indicator Heiken Ashi down.

It is recommended to buy the US dollar after the bears consolidate back below the moving average line, which will change the trend to a downward one, and the targets will be the levels of 1.1230 and 1.1169.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanation of illustrations:

The upper linear regression channel – the blue line of the unidirectional movement.

The lower linear regression channel – the purple line of the unidirectional movement.

CCI – the 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.

Heiken Ashi is an indicator that colors bars in blue or purple.