EUR/USD: technical analysis 10.04.2018

XRPUSDH410042018

Current trend

On 4-hour chart, EUR/USD is correcting down from the upper line of the Bollinger Bands (1.2329) and approaching its support area near 1.2298 (Murray [3/8]).

Breakout and consolidation of the price below the level of 1.2298 will let EUR/USD reach the level of 1.2267 (Murray [2/8]), which is the main target of the correction movement.

The upward trend will be restored after the price is set above the level of 1.2329 (Murray [4/8]).

In this case, the next targets of buyers will be the levels of 1.2359 (Murray [5/8])-(Murray [6/8]).

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.

Bollinger Bands are diverging, reflecting the development of the upward movement.

MACD is growing in the positive zone.

However, as Stochastic is in the overbought area, and the price has broken the upper border of Bollinger Bands, the downward correction is not excluded in short term.

Support and resistance

Support levels: 1.2298, 1.2268, 1.2237.

Resistance levels: 1.2329, 1.2359, 1.2390.

Trading recommendations

Long positions can be opened above the level of 1.2329 with the targets at around 1.2359-1.2390 and stop-loss 1.2305.

Short positions can be opened below the level of 1.2298 with the target at around 1.2268-1.2237 and stop loss 1.2320.