Technical analysis recommendations for EUR/USD and GBP/USD on April 23
Economic calendar (Universal time)
The morning statistics from the UK and the Eurozone are disappointing, from which data is in the red zone. Further, attention is focused on data from the United States at 12:30 (the number of initial applications for unemployment) and at 14:00 (sales of new housing).
EUR / USD
Players on the rise yesterday limited themselves again to testing the nearest zone of attraction and resistance of 1.0879 – 1.0901 (daily cross + historical level). Next, the initiative passed to the opponent, who managed to update the minimum of the last week, thereby forming the prerequisites for testing the next support zone located at 1.0778-68 (historical level + minimum extremum). As a result, the main tasks in the market today are as follows. To further strengthen the bears, it will be important to break through the supports in the area of 1.0778-68 and reliably consolidate below. To restore the bullish positions, you first need to return to the resistance of 1.0879 – 1.0901, and the emergence of further prospects is possible only after breaking through this zone.
Yesterday’s attempt to increase players to reach a change in the distribution of forces did not bring a positive result. They failed to achieve reliable breaking through of the key levels of the lower halves, which had amplification from the upper time intervals. As a result, the bears managed to restore the downward trend and now have an advantage. The downward trends within the day today are the support of the classic Pivot levels 1.0788 (S1) – 1.0755 (S2) – 1.0706 (S3). On the other hand, players to increase in the current situation need to regain their positions to the key resistance levels of lower halves for new plans and prospects to appear, which are joining forces today at 1.0837-52 (central Pivot level + weekly long-term trend). Furthermore, breaking through of the zone of resistance of high halves 1.0879 – 1.0901 will be of primary importance.
GBP / USD
Yesterday, there was a slowdown in the area of support for the weekly short-term trend (1.2305). A daily cloud will join this support (1.2324) in the near future. Keeping the weekly short-term and consolidating the relative daily cloud in the bullish zone will help strengthen the bullish moods, as a result of which the players will raise the question again of breaking through the important resistance zone 1.2450-1.2540, which combines many significant levels. The formation of a breakdown of the met levels of 1.2305-24 will lead to a further decline and testing of the strength of subsequent supports, which are consistently in a fairly wide range of 1.2213-1.2175 (weekly Fibo Kijun + daily Fibo Kijun) – 1.2029 (daily Kijun) – 1,1883 (daily Fibo Kijun).
The pair continues to remain in the correction zone, while players to increase are fighting for possession of key levels at H1 – the central Pivot level (1.2329) and the weekly long-term trend (1.2404). Now, securing the top will allow you to build new plans but failure to break through levels and update the minimum (1.2246) will return the pair to decline. The downward trends within the day can be noted at 1.2217 (S2) – 1.2162 (S3).
Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)
The material has been provided by InstaForex Company – www.instaforex.com
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