EUR/USD trading talks September 21st
Since the end of August, we have been observing smooth wave fluctuations near the levels of 1.0000 and 0.9900 and the formation of a divergence on the daily chart. Moreover, taking into account the daily downtrend, I see that the amplitude of its intra-channel fluctuations has significantly decreased after reaching the key level of 1.0000 and temporarily breaking through it. Despite the fact that the Euro/Dollar is below the key level, I count that the divergence allows me conclude about a further trend reversal or, as a minimum task, growth to the EMA 100 1.0300 and EMA 200 1.0620 levels on the daily chart.
On the four hour chart, the EMA 100 1.00085 and EMA 200 1.00556 levels will offer resistance and are likely to serve as markers to determine further growth.
The recent rush to 1.0200 and rapid fall back makes me very cautious, as the signals that the indicators show during news releases may be false. So if you are trading on support and resistance levels, then make sure that the price has consolidated after breaking through and use additional analysis methods to confirm.
