4-hour timeframe
Technical details:
The upper linear regression channel: direction - down.
The lower linear regression channel: direction - down.
The moving average (20; smoothed) - up.
CCI: 115.9561
On Wednesday, May 1, the currency pair EUR/USD fixed above the moving average line, thus, the trend in the instrument has changed to an upward one. However, today is an extremely important day due to a large number of important fundamental events. First, the United States will publish indices of business activity in the production of ISM and Markit in April. Secondly, there will be a report on the change in the number of people employed in the private sector. Third, the results of the Fed meeting will be announced late in the evening, and a press conference will be held. Absolutely all this data will be of great importance for the pair. Strong business indexes support the US dollar, as does the employment report. In the case of the Fed, there are few hopes for "hawkish" statements. And precisely the rhetoric of the Fed may not provide support for the US currency. Monetary policy is unlikely to tolerate any changes, the rates will remain the same. However, we believe that surprises are possible, so you need to be ready for the resumption of a downward trend. All the more so, despite the overcoming of the MA, the position of the euro still remains very weak. Thus, the current binding may be short. Therefore, all attention today on the designated reports.
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 has started an upward movement but has not yet managed to overcome the Murray level of "0/8" - 1.1230. If the news from the States today does not disappoint, then the downward trend may resume.
Sell orders advised to open no earlier than the consolidation of the pair below the moving with the targets at 1.1169 and 1.1108. Again, this option is very likely, given the importance of today's macroeconomic events.
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