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: 50.1233
After the EUR/USD pair updated its 1.5-year lows, there are grounds to assume the continuation of the downward trend to new lows. However, as the practice has shown, there are not so many sellers of the euro around these lows. Thus, at the moment, the pair is in a state of uncertainty, as there is still no reason even for medium-term purchases of the euro currency, and few want to sell the pair at 1.5-year lows. Therefore, traders are limited to short-term sales. The situation with the US trade war against the EU also adds uncertainty. In recent days, the attention of traders is more focused on trade relations between China and the United States, but Donald Trump is unlikely to forget about the European Union. There is every reason to assume that any trade conflict with Washington will not be in favor of the European Union, and therefore potentially means a deterioration of the economic situation, which is already not the best. Today, May 8, only Mario Draghi's speech can be noted among the important macroeconomic events. However, the head of the ECB rarely pleases traders with important messages, and the situation in the eurozone is such that nothing new can be said about it. Therefore, it is unlikely that we will hear any fundamentally new information 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 again changed its direction of movement, having fixed above the moving average. Thus, there is a reason to believe that the pair has moved to the flat. So technically now current long positions with the goal at 1.1230, but any position should be opened with the utmost caution.
It is recommended to open sell orders not earlier than reversing the pair below the moving average line with the first target at 1.1169.
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