Forex Trading: Technical Analysis (EURUSD) – October 07, 2019

The Euro (Euro) slips down against the US Dollar (USD) on Monday, decreasing the price of EURUSD to less than 1.1000. The price of the pair decreases after a major economic release. The technical bias might remain bearish because the price printed a lower low in the last downside move.

EUR/USD Technical Analysis

As of this writing, the pair is being traded around 1.0970. The price of the pair may come across support at 1.0928, the trend line support level ahead 1.0600, the psychological number and then another support level may come around 1.0340, the low of January 03, 2017 as shown in the graph below.

On the upside, a trend line may resist the price around 1.1023. Another resistance level is the 38.2% Fibonacci level which may force the price to stay below 1.1081. Finally, the major horizontal resistance comes in place around 1.1144 as shown in the graph above. The technical bias shall remain bearish as long as 1.1003 the key horizontal resistance level remains intact.

European Retail Sales News

The Retail Sales figure released by the Eurostat is an estimate of change is sales patterns of the retail segment in the zone. It reflects the short term performance of the retail sector across Europe. It is to be understood that the change is represented in percentage and not as an absolute figure. The net change is considered as an indication of people spending. It is considered as one of the important indicators of the European economy. Generally speaking, a positive reading anticipates a bullish market for the Euro (EUR) whereas a negative reading implies a bearish trend for the Euro (EUR).

Conclusion

As of taking account of the previous pattern of the price movement over the last few days, trading EURUSD around current levels may be a good idea in a short to medium term. However, long term trading might not work since it’s been about a quarter that the EURUSD kept following a bearish trend.