EUR/USD: technical analysis 04.05.20
EUR/USD is in the stage of a downward correction after growing to the level of 1.10176. The key target of the correction is located in 1.09100-1.08948 area. This area can activate and upward reverse of the price. Meanwhile, the decisive breakdown of the 1.08948 will be a signal of the downward trend resumption and give a prospect of decline to the area of 1.08643 support.
The upward rebound from 1.09100 and pullback above 1.09558 will give a prospect of growth to the area of 1.09734-1.09863. The upper border of this channel seems a key level for the buyers. Pair’s sustained trading above it will let the price re-test 1.10176 resistance. One may speak about downward movement continuation after the price consolidates above the resistance level of 1.10200. In this case, the next targets of buyers will be the level of 1.10474.
Technical indicators maintain a sell signal.
Bollinger Bands are diverging on the background of bullish momentum.
MACD volumes are decreasing in the positive zone.
Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 1.09253, 1.08948, 1.08643.
Resistance levels: 1.09558, 1.09863, 1.10168, 1.10474.
Short positions can be opened below the level of 1.08948 with the target at around 1.08643 and stop-loss at 1.09949
Long positions can be opened above the level of 1.09558 with the target at around 1.09863 and stop-loss at 1.09456.