EUR/USD trading talks October 21
On the daily chart, the Euro/Dollar shows a confident correction, with MACD convergence, and a signal for further growth. The key level, which will be the first resistance in case of growth, is 0.98750, which was reached during the previous wave of growth and touched the EMA 200 line on the four-hour chart. It is also important to note that the divergence on the daily chart along the main downtrend was broken in the fall to 0.95350.
On the four-hour chart, the short-term picture is clearer. The current narrowing corrective channel can be expanded. The level 0.98750 will exert strong pressure and prevent the trend from expanding, so its breaching will be a marker indicator for growth to 0.99250 and 1.0000.
As for support, the 2 levels that I would pay attention to are 0.97000 and 0.96350. It should not be overlooked that the MACD on the four-hour chart is still in a sell position and at the same time, only historical levels provide support, while resistance is also due to indicative ones.
Probably this week we will not see a way out of the correction, or its expansion, but the next trading week will start with more obvious signals, which will increase certainty.
