4-hour timeframe
Technical details:
The upper linear regression channel: direction - down.
The lower linear regression channel: direction - down.
The moving average (20; smoothed) - down.
CCI: -104.252
On Friday, April 26, the EUR/USD currency pair continues the downward movement, as evidenced by the blue bars of the Heiken Ashi indicator. Only the last bar of the indicator was colored in purple, which does not mean the beginning of the correction yet. The whole week was extremely boring due to the almost complete absence of any macroeconomic statistics. It ends in the same way. Today, several preliminary values of future reports will be released in the States. In particular, GDP for the first quarter of 2019, as well as the indices of expenditure on personal consumption. GDP data can have an impact on the movement of the pair. In the first quarter, growth is expected to be 2.1% q/q, which is lower than in the previous quarter. If the real value is even lower, then traders can begin to reduce short positions for the pair, which will lead to the necessary correction, which will be logical. No more important news is expected today. Unfortunately (or fortunately), the topic of the trade war between the EU and the United States subsided. This is good for Europe. There is a great opportunity to quietly sit down for such negotiations with Donald Trump and peacefully resolve all differences, and not bring the situation to the introduction of mass duties, as China did, then to still sit down for such negotiations and make concessions. New trade agreements are likely to be less profitable for Europe than previous ones, but the trade war is even worse.
Nearest support levels:
S1 - 1.1108
Nearest resistance levels:
R1 - 1.1169
R2 - 1.1230
R3 - 1.1292
Trading recommendations:
The EUR/USD currency pair continues its downward movement. Thus, it is still recommended to consider short positions with the target at 1.1108 before the Heiken Ashi indicator turns to the top.
Buy positions are recommended to open no earlier than the consolidation of the pair above the moving average with the targets at 1.1230 and 1.1292. The upward correction is maturing, but so far there is no reason to overcome the moving average line.
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 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 - www.instaforex.com