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22.04.201909:58 Forex Analysis & Reviews: EUR/USD. April 22nd. The trading system "Regression Channels". The euro falls back to the important level of 1.1200

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4-hour timeframe

Exchange Rates 22.04.2019 analysis

Technical details:

The upper linear regression channel: direction - down.

The lower linear regression channel: direction - up.

Moving average (20; smoothed) - down.

CCI: -80.3536

The EUR/USD currency pair on Monday, April 22, after a completely calm and macroeconomically empty Friday, also continues with absolutely low-volatile movements that cannot be called trend movements. Today, Easter is celebrated on Monday in many countries around the world, so no important macroeconomic reports are scheduled for today. Moreover, this means that market activity today will also be low, as many market participants today will be out of the market. Thus, most likely, the weakest movement around the Murray level "0/8" - 1.1230 will continue today. Once again, we draw attention to the fact that the pair has approached close to the lower boundary of the most important support area of 1.1200. This level has kept the pair above itself for several months already, but the price has returned to it again, so it seems that to overcome it is a matter of time. It seems that in the first 4 months of 2019, traders did not find compelling reasons for buying European currency in the medium and long term. And the threat of a trade war with America makes us worry about the state of the EU economy and the position of the euro in the future. Thus, we believe that traders will still be able to push the level of 1.1200.

Nearest support levels:

S1 - 1.1230

S2 - 1.1200

S3 - 1.1169

Nearest resistance levels:

R1 - 1.1261

R2 - 1,1292

R3 - 1.1322

Trading recommendations:

The EUR/USD currency pair continues a weak downward movement. Thus, it is now recommended to consider sell orders with the targets of 1.1230 and 1.1200. The reversal of the Heiken Ashi indicator to the top is very likely near the target levels.

It is recommended to open buy orders not earlier than fixing the pair above the moving with targets at 1.1292 and 1.1322. The calendar of macroeconomic events today is empty, so volatility can remain low.

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.

Paolo Greco
Analytical expert of InstaForex
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