EUR/USD analysis of the local 4-hours chart situation


EUR/USD trading talks October 26

While the downward trend on the daily chart has finally broken through the support of the upward weekly trend, expanding its possible channel, I propose to consider a more local situation.
The four-hour chart clearly shows a correction that has gone beyond the descending channel. The prospect of a return to the longer-term uptrend remains intact. However, if the marker support level of 1.05300 is broken, the probability of returning to the channel will increase and I will expect a fall to 1.05000 and possibly to 1.04500. The intersection of EMA lines on the daily chart is confirmation of a possible fall. It is also worth noting that on the four-hour MACD shows a strong selling trend, while moving into the area of negative values.
In addition to the fact that I am considering the possibility of a decline within the trend, I would like to mention the fact that the daily MACD has a fairly confident growing trend, despite this contradicts the EMA positions. Therefore, I will consider the EMA 100 level 1.05830 on the four-hour chart as a marker for possible growth to the key resistance 1.06375. Moreover, the price level is now close to the correction channel support area and further decline will mean the end of this local correction trend.

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