4-hour timeframe

Technical data:

The upper channel of linear regression: direction – up.

The lower channel of linear regression: direction – sideways.

The moving average (20; smoothed) – down.

CCI: -79.4796

Well, the first performance of Jerome Powell this week was boring and uninteresting for traders. Powell did not touch upon the subject of monetary policy. Today will be his first speech in Congress, before the Committee on Financial Services. Thus, today traders can count on serious movements of the euro/dollar pair. However, this will still require that the head of the Fed said something really interesting. This may be hints at specific terms of rate cuts, or a negative vision of the state of the economy, or weak forecasts of economic indicators, or concerns about Trump's protectionist policies and trade wars. On this information, traders will definitely trade more actively than yesterday. However, yesterday, although volatility was low, the downward movement remained despite the fact that no important information was available to traders. The euro was falling, and the pound sterling was falling, which indicates the continued high demand for the US dollar. Before overcoming the previous local minimum, the pair remains about 10 points. Then, the bears will receive an additional trump card. Late in the evening of July 10, the minutes of the last meeting of the Fed will also be published and theoretically, it may contain interesting information. As a rule, the Fed protocol does not add anything new to the data that become known immediately after the meeting of the monetary committee. However, there are exceptions, so it is not recommended to lose sight of this event.

Nearest support levels:

S1 – 1.1169

S2 – 1.1108

S3 – 1.1047

Nearest resistance levels:

R1 – 1.1230

R2 – 1.1292

R3 – 1.1353

Trading recommendations:

The EUR/USD currency pair continues its downward movement. Now, therefore, it is recommended to continue to buy the US dollar to the Murray level of "3/8" - 1.1169 before the reversal of the indicator Heiken Ashi up.

It is recommended to buy the euro after traders consolidate back above the moving average line, which will change the trend to an upward one, with the first target of 1.1292.

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.