4-hour timeframe

Technical details:

The senior linear regression channel: direction - up.

The junior linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: -43.4499

On Wednesday, January 23, the currency pair EUR / USD completed Murray's level of "2/8" - 1.1353 and, rebounding from it, began the same upward correction that was as weak as the general movement. The goal for the upward movement is now moving. But from a fundamental point of view, there is still nothing to note. The closest important event in the eurozone is the meeting of the European Central Bank and the announcement of its results, which will be held tomorrow. However, what can we expect from the ECB? Monetary tightening? No, with a probability of 100%. The quantitative incentive program has already been completed. Hints that the rate hike will start in the near future? Hardly. In general, we believe that surprises at the current meeting will be excluded. At the press conference, there will be general phrases about the tension of the regulator due to the unresolved Brexit, a possible decline in economic development and trade tensions with the States. Nothing new. Today, the calendars of macroeconomic events in the US and the eurozone are completely empty. Thus, the weak volatility of the instrument is likely to continue today. A reversal of the Heikin Ashi indicator down will indicate the completion of the correction and the resumption of the downtrend, which is now limited to the level of 1.1353.

Nearest support levels:

S1 - 1.1353

S2 - 1.1292

S3 - 1.1230

Nearest resistance levels:

R1 - 1.1414

R2 - 1.1475

R3 - 1.1536

Trading recommendations:

The currency pair EUR / USD has begun to adjust. Thus, it is recommended to open new short positions in case of fixing the price below the level of 1.1353 with the target of 1.1292. Heikin Ashi's turn down will be the primary signal of the completion of the correction.

Buy positions will become relevant if traders overcome a moving average line. In this case, the initiative will go into the hands of the bulls and will be supported by the senior linear regression channel.

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.