4-hour timeframe
Technical details:
The upper linear regression channel: direction - down.
The lower linear regression channel: direction - up.
The moving average (20; smoothed) - down.
CCI: -178.0114
On Thursday, April 25, the EUR/USD currency pair continues its downward movement, as evidenced by the blue bars of the Heiken Ashi indicator. Despite the fact that macroeconomic data are not available to traders now, a very significant event has occurred for the pair. Namely, overcoming the level of 1.1200, which kept the pair from further falling for several months. Thus, market participants have now removed the psychological barrier that keeps them from new sales of the pair. This explains the relatively strong downward movement yesterday. Today, the United States will publish a fairly important report on orders for long-term use of goods for March. According to experts, all indicators should grow in comparison with the reporting periods. If the forecast comes true, then traders will have the necessary grounds for new pair sales. At the same time, we draw attention to the fact that the current decline in the euro currency is clearly of a technical nature. That is, the reaction to the report from the US may not follow. Given the relatively strong decline in the euro against the US dollar in recent days, a correction is even more likely. However, it is not necessary to try to guess its beginning, it is better to closely monitor the readings of the "fast" indicator Heiken Ashi, and at the time of the release of the report in the US, trade with extreme caution.
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 reversal of the Heiken Ashi indicator to the top.
Buy positions are recommended to open no earlier than fixing the pair above the moving average with the target at 1.1292. The upward correction is brewing, but so far there is no reason to overcome the MA.
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 - www.instaforex.com