EUR/USD trading talks February 03
Euro Dollar returned to the local uptrend channel after an impressive fall, which I mentioned as an unlikely scenario.
If you follow my trading results, I would like to make a small note about the recent Euro Dollar trade, which I closed when I saw upside prospects in order to avoid bigger losses. The decision was absolutely correct and justified, as the market reached far higher.
Following the US news, the EUR/USD fell again to 1.08400 and EMA 100 on the 4-hour chart. I have corrected the trend channel on the daily chart, and you can see that the lows were an attempt to break through the uptrend channel support.
The MACD is currently signalling a further downtrend on the 4-hour and daily charts, where there is also a long term divergence with an uptrend. Thus, I consider the current break of 1.08460 as a marker level for a further fall to the support area of 1.08000 and probably further to EMA 200 on the four-hour chart. The current uptrend reversal could be considered after falling below 1.08000.
Despite the confident fall and preliminary signals about the reversal of the daily trend, I also see the probability of growth after another attempt to break through the support of the trend channel. The basis for this assumption was the consolidation in the EMA 100 area on the weekly chart, which may be a precondition for growth to the EMA 200 and level 1.11700. In addition, on the daily chart, a convergence of the EMA levels of 100 and 200 has formed, which can also lead to the intersection of the lines and further growth.