EUR/USD. April 17th. The trading system "Regression Channels"

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: 80.3736

On Wednesday, April 17, the currency pair EUR/USD adjusted to the moving average line and rebounded from it, resuming the upward trend. Purple bars indicator Heiken Ashi signals about the upward movement and within the day. Thus, the pair managed to maintain an upward mood, despite the fact that the euro still does not have fundamental support. Today, the European Union will publish an inflation report for March. The consumer price index is expected to be 1.4% annually and 1.0% monthly. However, given the not the best state of the EU economy and a very likely trade war with the States, there is a reason to assume that the forecast value is unlikely to be exceeded. Thus, the euro is unlikely to receive fundamental support today. On the other hand, given the growth of the euro in recent days, it seems that the pair does not really need news support. Thus, moderate growth may continue. We also note that the Forex market is not very volatile right now, and this is especially true for the EUR/USD pair. Thus, the potential profit on purchase transactions will not be large. Thus, our forecast is to maintain the upward trend, traders are advised to follow the trend, but be prepared for the fact that it can change to a downward, as it is very unstable.

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 completed another round of correction. Thus, it is now recommended to consider long positions with targets at 1.1322 and 1.1353. The publication of the report on inflation in the EU could trigger a new round of downward correction.

It is recommended to open a sell position no earlier than fixing a pair below the moving with targets at 1.1261 and 1.1230. 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 – blue line unidirectional movement.

The lower linear regression channel – purple line 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.

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

The material has been provided by InstaForex Company -