EUR/USD trading talks April 07
The first April week started with a steady growth and the continuation of the uptrend, while the resistance level of 1.09100 was passed with a new top for the local trend at 1.09730. But after the Wednesday, the price returned and consolidated in the area 1.09100 – 1.09200. This correction provides some space for further possible prospects next week.
The priority for me remains the rise to the level of 1.10300 and further interaction with this key resistance level. This will be possible only if the uptrend on the 4-hour chart continues and the price exits the 1.09200 area and rises above the key marker level 1.09730.
In order to consider the option of falling after the current correction, I propose to clarify key levels that will provide support. First of all, it should be noted that a decline below the level of 1.08750 will be the primary sign of a break in the uptrend. Moreover, EMA 200 on the hourly chart is currently located at 1.08820, which will also provide support. The initial level, which could become a decline target, will be the EMA 100 area on the four-hour chart (the line is now at 1.08330) and also the key support level 1.07850 (close to EMA 200).
There is a slight MACD divergence in the 4 hours chart, but the EMA and RSI do not confirm this possible reversal signal.
Thus, at the moment I noted quite favourable conditions formed for further growth, while the fall will involve the influence of several support levels.