On Friday, EUR/USD fell sharply after it hit resistance at 1.1690, almost touching the 23.6 Fibonacci level. The pair tumbled nearly 150 pips, breaking below the 1.1580 zones, which had been providing decent support since October 13th. Yesterday, the rate rebounded somewhat from the previous downside resistance line taken from the high of September and retested again as a support line. But bearing in mind that, overall, it continues to trade below, and the experts will adopt a negative stance.
The currency pair may continue recovering for a while more, perhaps climbing back above the 1.1580 barriers. That said, the traders will see decent chances for the bears to jump back into the action from near the 1.1690 zones. This may result in a slide and a test near the low of October 12th, at 1.1524, the break of which will confirm a forthcoming lower low and may allow a test near the psychological zone of 1.1500. If the bears are not willing to stop there either, a lower break may extend the current downtrend towards the 1.1465 zones.
Now in order to abandon the bearish case and start examining a bullish reversal, traders would like to see a break back above the 1.1750 zones. This could confirm the break above the aforementioned downside line and may initially target the peak of September 17th, at around 1.1790. If the advance does not stop there, then we could see extensions towards the 1.1840 zone, the break of which could pave the way towards 1.1885.
Looking at our short-term oscillators, we see that the RSI rebounded from slightly above its 30 lines, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well. Both indicators detect slowing downside speed and support the notion for some further recovery before the next leg south.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
The currency pair may continue recovering for a while more, perhaps climbing back above the 1.1580 barriers. That said, the traders will see decent chances for the bears to jump back into the action from near the 1.1690 zones. This may result in a slide and a test near the low of October 12th, at 1.1524, the break of which will confirm a forthcoming lower low and may allow a test near the psychological zone of 1.1500. If the bears are not willing to stop there either, a lower break may extend the current downtrend towards the 1.1465 zones.
Now in order to abandon the bearish case and start examining a bullish reversal, traders would like to see a break back above the 1.1750 zones. This could confirm the break above the aforementioned downside line and may initially target the peak of September 17th, at around 1.1790. If the advance does not stop there, then we could see extensions towards the 1.1840 zone, the break of which could pave the way towards 1.1885.
Looking at our short-term oscillators, we see that the RSI rebounded from slightly above its 30 lines, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well. Both indicators detect slowing downside speed and support the notion for some further recovery before the next leg south.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.