EUR/USD trading talks update after fluctuation narrowing
A narrowing of the channel, or a decrease in the amplitude of market fluctuations, especially with a horizontal or close to horizontal movement, is always a very clear sign of further impulse that, like a tightened spring, will jump up or down.
This situation is now on the Euro Dollar, which has fallen to a critical value over the past month and is trying to get out of the depth called 1.000.
The correction, which began to move up with a quite confident amplitude, gave hope to become the beginning of a return at least to the values of 2017. But as we see now, the correctional channel has sharply reduced its amplitude.
Of course, on the Daily chart there is a clear MACD indicating further growth, which may lead to positive thoughts for the Euro. At the same time, a very weak, barely noticeable divergence appeared on the 4-hour chart. Price fluctuations repeatedly cross the EMA 100 level, but without reaching EMA 200, the chart goes down again. From this we can conclude that EMA 200 will be a key resistance level, and in case of an upward momentum, it will be an indicator of growth to 1.0340 and 1.6070. In case of fall, It will be more difficult to determine end level, due to several support levels (1.0140, 1.0125, 1.0100).
If the first level is broken by downward momentum, I would trade on the basis that the next one can become a key support and stop the fall.