EUR/USD. April 15th. The trading system "Regression Channels". The euro continues to grow, but its potential is very limited

4-hour timeframe


Technical details:

The upper linear regression channel: direction - down

The lower linear regression channel: direction - down.

Moving average (20; smoothed) - up.

CCI: 144.6547

On Monday, April 15, the currency pair EUR/USD retains the probability of continuing the upward movement, despite the fact that last week also ended with the growth of the pair, which was not provoked by fundamental events. It's just that traders have moved on to purchases that are quite logical from a technical point of view. Today, this situation may persist, since the calendar of macroeconomic events is empty, respectively, only technical factors will be available to traders. Since the last bars of the indicator Heiken Ashi colored in purple, the local movement is upward. Both linear regression channels continue to be directed downward, which signals a downward trend in the medium and long term. From our point of view, the key factor in the growth of the euro is the lack of overcoming the level of 1.1200, which, as we have repeatedly noted, is the lower boundary of a strong support area. The only question that is really important right now is up to which levels the upward movement will continue. Given all the same lack of fundamental support for the euro currency, the prospects for its growth look very vague. If you look at a longer-term timeframe, it becomes clear that in recent months, the pair cannot grow by more than 200-250 points.

Nearest support levels:

S1 - 1.1292

S2 - 1.1261

S3 - 1.1230

Nearest resistance levels:

R1 - 1.1322

R2 - 1.1353

R3 - 1.1383

Trading recommendations:

The EUR/USD currency pair has resumed its upward movement. Thus, it is now recommended to consider long positions with targets at 1.1322 and 1.1353. A new turn of the Heiken Ashi down indicates a new round of downward correction.

It is recommended to open the sell positions no earlier than reversing the pair below the moving average line with targets at 1.1230 and 1.1200. But the potential downward movement will still be limited to the level of 1.1200.

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

Explanations for illustrations:

The upper linear regression channel is the blue lines of the unidirectional movement.

The lower linear regression channel is the violet lines 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.

The material has been provided by InstaForex Company -