EUR/USD. April 8. Trading system "Regression Channels". Calm trading will continue today

4-hour timeframe


Technical details:

The higher linear regression channel: direction - down.

The lower linear regression channel: direction - down.

Moving average (20; smoothed) - down.

CCI: 46.1538

On Monday, April 8, the currency pair EUR/USD continues to be located below the moving average line, and the volatility remains quite low. By tradition, on Monday there will be practically no macroeconomic publications, which means that today the market's low activity is likely to continue. In general, the most important question remains open for the euro currency paired with the US dollar – will the pair be able to overcome the level of 1.1200, which represents the lower boundary of a strong support area? If traders still manage to overcome it, the euro can almost go to a free fall. Over the past 3-4 months, it became clear that there are few buyers of the pair. Accordingly, for a strong strengthening of the euro currency, strong fundamental bases are needed, which are not present. There was a chance that due to the completion of the program of a systematic increase in the Fed's interest rates, the US dollar would begin to feel pressure, but it was logical for traders to judge that the situation with the ECB is still worse. The European regulator is not even thinking about any tightening of monetary policy. Moreover, a new LTRO program has been launched, which is once again called upon to support the banking sector and the economy as a whole. From a technical point of view, short positions remain relevant until the pair is fixed above the moving average. It is recommended to be careful since the level of 1.1200 is quite strong.

Nearest support levels:

S1 - 1.1200

S2 - 1.1169

Nearest resistance levels:

R1 - 1.1230

R2 - 1.1261

R3 - 1.1292

Trading recommendations:

The currency pair EUR/USD may continue to move downwards. Thus, now it is still recommended to consider trading for a fall with the targets at 1.1200 and 1.1169, before the new reversal of Heiken Ashi's indicator to the top.

It is recommended to open buy orders no earlier than traders overcome the moving average line with the targets at 1.1261 and 1.1292. In this case, the tendency for the instrument to change to bullish, and the euro will have a small chance of growth.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

The higher linear regression channel is the blue lines of the unidirectional movement.

The lower linear regression channel is the purple 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 -