25.06.201907:52 Forex Analysis & Reviews: Overview of EUR/USD on June 25. The forecast for the "Regression Channels". What will Jerome Powell tell the markets in New York?

4-hour timeframe

Technical data:

The upper linear regression channel: direction – sideways.

The lower linear regression channel: direction – up.

The moving average (20; smoothed) – up.

CCI: 112.3347

The first trading day of the week for the EUR/USD pair passed without a single hint of the beginning of the correction, which, in technical terms, is brewing. There were no news and macroeconomic reports on Monday, June 24, but traders still found no reason to take profits on long positions. Thus, the upward movement continues, as evidenced by the indicator Heiken Ashi. Today, the main and only important news of the day is the speech of the Fed Chairman Jerome Powell at the economic forum. It is likely that Powell will touch on the topic of monetary policy. The question is: will it tell the markets anything new? Just last week, he made a speech on the US monetary policy, devoted to the results of the Fed meeting. Thus, it is unlikely that the situation has changed in a few days. Therefore, the maximum that traders can expect today is a repetition of the speech of a week ago. But if Powell continues to focus on the "dovish" aspects, it can increase the confidence of traders that the Fed will still go to reduce rates in 2019. Recall that about half of the members of the FOMC allows for a reduction in the rate this year. And this, in turn, will create new pressure on the US dollar.

Nearest support levels:

S1 – 1.1353

S2 – 1.1292

S3 – 1.1230

Nearest resistance levels:

R1 – 1.1414

R2 – 1.1475

R3 – 1.1536

Trading recommendations:

The EUR/USD currency pair continues to move upwards, as evidenced by Heiken Ashi. Thus, it is now recommended to hold long positions with targets at 1.1414 and 1.1475 to the reversal of the Heiken Ashi down.

It is recommended to sell the euro currency after traders consolidate below the moving average line, which will change the trend to a downward trend, with the first targets at 1.1230 and 1.1200.

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 – the blue line of the unidirectional movement.

The lower linear regression channel – the purple line 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.