4-hour timeframe
Technical details:
The upper linear regression channel: direction - down.
The lower linear regression channel: direction - down.
The moving average (20; smoothed) - sideways.
CCI: 30.0146
On Tuesday, April 30, the currency pair EUR/USD has worked a moving average line and has not yet been able to overcome it. From a technical point of view, everything is logical and expected. No instrument can move in one direction forever. The price rebound from the moving average line can provoke a resumption of the downward movement, and a reversal of the down indicator Heiken Ashi will confirm this. Today, the eurozone is scheduled to publish reports on unemployment and GDP for the first quarter (preliminary value). Both of these reports can cause quite a strong market reaction, as they are quite important. Especially if the real values do not match the forecasts. Weak values are likely to cause new sales of the euro currency and the resumption of the downward trend. No major reports are expected from the States today. The volatility of the instrument is low enough, the pair was only about 40 points. Based on the current technical picture, the rebound from the MA looks the most preferable. From a fundamental point of view, the resumption of the downward movement is also preferable, as the euro did not have any serious fundamental support.
Nearest support levels:
S1 - 1.1169
S2 - 1.1108
Nearest resistance levels:
R1 - 1.1230
R2 - 1.1292
R3 - 1.1353
Trading recommendations:
The EUR/USD currency pair continues to be adjusted. Thus, now it is still recommended to consider short positions with the target at 1.1108 but after the Heiken Ashi indicator turns down or the price rebounds from the MA.
Buy positions are recommended to open no earlier than fixing the pair above the moving average line with the first target at 1.1230. Today, the euro can theoretically get support if the GDP in the first quarter is higher than 1.1%.
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