4-hour timeframe
The amplitude of the last 5 days (high-low): 69p - 84p - 45p - 63p - 42p.
Average amplitude over the last 5 days: 61p (58p).
The last trading day of the month ends with the strengthening of the European currency. Finally, the euro has waited for fundamental support. Although this is only one report, and it hardly means a serious change in the state of the EU economy for the better, nevertheless, it has supported the euro. The unemployment rate in March also pleased, as it dropped to 7.7%. Thus, the Foundation today is completely on the side of the euro. Unfortunately, the general trend is not in favor of the euro. In technical terms, it is possible to count on a more or less serious strengthening of the euro, not to mention a full-fledged upward trend, not before overcoming the Ichimoku cloud. Looking at the higher timeframe, a downward trend is clearly visible, which will not be very easy to break. The main factor not in favor of the euro is that the US monetary policy is much stronger than the European one, as well as the economy. Therefore, traders prefer long-term investment in the US economy rather than in Europe. Thus, we believe that in the medium term, the balance of forces between currencies will not change. Especially against the background of the growing trade war between the EU and the US.
Trading recommendations:
The EUR/USD pair continues to move up and now buy orders with targets at 1.1234 and 1.1272 have become relevant, but with small lots, as the "Golden Cross" is rather weak.
It is recommended to consider sell orders in small lots in order to reach the level of 1.1082 not earlier than the reverse consolidation of the price below the critical line. In this case, the downward trend may resume.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of the illustration:
Ichimoku indicator:
Tenkan-sen - the red line.
Kijun-sen - the blue line.
Senkou Span A - light brown dotted line.
Senkou Span B - light purple dotted line.
Chinkou Span - green line.
Bollinger Bands indicator:
3 yellow lines.
MACD Indicator:
A red line and a histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com