4-hour timeframe
Technical details:
The upper linear regression channel: direction - down.
The lower linear regression channel: direction - down.
Moving average (20; smoothed) - up.
CCI: 70.0527
On Wednesday, April 10, the EUR/USD currency pair began a round of downward correction but much more important is how the day will end for the euro. Today, the ECB will announce the results of the meeting, and although no one expects any changes in monetary policy, words can be heard at the ECB press conference that will have a serious impact on the currency pair. By and large, all the questions come down to whether the rhetoric of Mario Draghi is frankly a "pigeon". According to his previous speeches, it became clear to the markets that no tightening of monetary policy should be expected in the near future, and the EU economy still needs support. Thus, focusing on the need to stimulate the economy will be a bearish factor for the pair. In addition to the ECB meeting, a report on inflation in the US in March will be published today. The predicted value of the main indicator is + 1.8% y / y. If the forecast comes true, this will again be a bearish factor for the pair. In the evening, we are waiting for the publication of the minutes of the last Fed meeting, and although around such events are rarely unexpected, since all the necessary information comes after the meeting, surprises are possible. In general, today we will have a very interesting day with many important fundamental events.
Nearest support levels:
S1 - 1.1261
S2 - 1.1230
S3 - 1.1200
Nearest resistance levels:
R1 - 1.1292
R2 - 1.1322
R3 - 1.1353
Trading recommendations:
The EUR/USD currency pair began to adjust against the upward trend. Thus, it is recommended to consider long positions with targets at 1.1292 and 1.1322 after turning Heiken Ashi's indicator to the top.
Short positions are recommended to be opened not earlier than the reverse consolidation of the pair below the moving with the targets at 1.1230 and 1.1200. In this case, the downward trend of the pair may resume.
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 - 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