4-hour timeframe
Technical data:
The upper linear regression channel: direction – down.
The lower linear regression channel: direction – down.
The moving average (20; smoothed) – sideways.
CCI: 49.1622
The EUR/USD pair tried to get out of the outright flat yesterday, but it failed to gain a foothold above the Murray level of "0/8" - 1.1230. So, bulls have no special advantage now. We cannot even say that the pair is now inclined to strengthen, since the previous local maximum has not been overcome, both channels of linear regression are directed downwards. Jerome Powell, whose speech took place yesterday, did not touch upon the topic of monetary policy. Accordingly, traders were deprived of any new macroeconomic information. On the last trading day of the week, the publication of the consumer price index in America for April is planned. Inflation is expected to accelerate to 2.1% year-on-year, above the previous value. Accordingly, the US dollar may receive support today, however, as we said earlier, the current price levels of the pair are quite unattractive for new sales. Traders are obviously cautious with them, so there may be no reaction to a strong inflation report. If the real value is lower than the forecast, the euro may get support. We also remind you that today, the States should increase duties on Chinese imports. Negotiations between the countries should also take place today.
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 made a breakthrough, but it is difficult to state the formation of a new upward trend. If the pair manages to overcome the level of 1.1230, it will be a signal to cautious purchases with the target at 1.1292.
It is recommended to consider selling orders for the pair not earlier than consolidating below the Murray level of "-1/8" - 1.1169 with the aim of 1.1108.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of illustrations:
The upper linear regression channel – blue line unidirectional movement.
The lower linear regression channel – purple line 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