05.04.202219:06 Forex Analysis & Reviews: Technical analysis of EUR/USD for April 05, 2022

Overview :

The EUR/USD pair steadied below MA 100 and MA 50 on the H4 chart. Yesterday the EUR/USD pair traded lower and closed the day in the red around 1.0951.

Today it was trading in a narrow range of 1.0996 - 1.0806, staying close to yesterday's closing price. The EUR/USD pair broke through and fixed below the moving average line MA (100) H1 (50).

Moreover, the RSI is still signaling that the trend is downward as it remains strong below the moving average (100), (50).

Furthermore, the price has been set below the strong resistance at the level of 1.0996, which coincides with the 50% Fibonacci retracement level. This resistance has been rejected several times confirming the downtrend. Additionally, the RSI starts signaling a downward trend.

The situation is similar on the four-hour chart. Based on the foregoing, it is probably worth sticking to the south direction in trading, and while the EUR/USD pair remains below MA 100 H1, it may be necessary to look for entry points to sell for the formation of a correction.

As a result, if the GBP/USD pair is able to break out the first support at 1.0895, the market will decline further to 1.0806 in order to test the weekly support 2. In the H4 time frame, the pair will probably go down because the downtrend is still strong.

However, probably, the main scenario is continued decline towards 1.0806 (last month low).

Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.0895 with the first target at 1.0806 and further to 1.0750.

Alternative scenario is consolidation above MA 100 H4, followed by a rise to $1.1103.