Hot forecast and trading signals for EUR/USD pair on April 24



On the hourly chart, the euro/dollar pair is trading inside the downward channel on April 24. However, at the time of writing, the bears met quite strong support in the way at the level of 1.0762. The quotes rebounded from this level at least twice, but each subsequent move up was less than the previous one. Thus, we are inclined to believe that this level will be broken down. On the other hand, the Euro currency continues to be under moderate market pressure due to the failure of negotiations at the EU summit. Both parties failed to agree on sources of financing for an economy that is experiencing serious problems amid the "coronavirus" pandemic. And if the EU economy does not receive assistance, it will decline even faster. We also all saw indexes of business activity in the services and production sectors for March and April but it's better not to look at these values and generally forget about them. Another thing is that everything is far from perfect across the ocean. Business activity in the States is also declining rapidly, which, in principle, iis not surprising in the conditions of quarantine. But, as we said in fundamental review , the dollar continues to be in demand in the currency market simply because it is the dollar. Investors and traders all over the world believe that if there is a crisis, it is necessary to transfer their assets to the us currency. Today, the bulls can be helped by reports on orders for long-term goods in the United States. These numbers promise to be as disastrous as reports on unemployment claims or business activity. And since we do not expect statistics from the Euro zone today, the only report from the US and the possible desire of traders to fix part of the profit before the weekend may push the pair's quotes up in the afternoon.

Based on the foregoing, we have two trading ideas for April 24:

1) Bears need to consolidate below the local support level of 1.0762 in order to continue the downward movement. Breaking through this level will open the way to the second level of support for the 4-hour timeframe. Thus, in this case, we recommend selling the EUR/USD pair and taking profits near the level of 1.0714. Here, the potential Take Profit will be 48 points.

2) Another rebound of the price from the local support level of 1.0762 can reduce the zeal of the bears to zero and allow the bulls to play for an increase. In this case, according to the canons of technical analysis, we can expect an update to the previous local maximum, that is, the level of 1.0847. The critical line Kijun-sen of the Ichimoku indicator on the 4-hour timeframe and the upper line of the downward channel is near this level. Thus, the round of upward movement will most likely end in this area. In this case, we recommend buying the EUR/USD pair with the goal of 1.0825, near which you can take profits. Here, the potential Take Profit is 50 points.

The material has been provided by InstaForex Company -