Forex Trading Technical Analysis (EUR/USD) – October 16, 2019

Forex Trading Technical Analysis (EUR/USD) – October 16, 2019

The Euro (EUR) slid down against the US Dollar (USD) on Wednesday, decreasing the price to less than 1.1100. The price decrease amid a major economic release with respect to economic sentiment. The technical bias may remain bearish since the price printed a lower low in the recent downside move.

EUR/USD Technical Analysis

As of this writing the pair is being traded around 1.1030, an immediate support level may be seen around 1.1004, the 23.6% Fib level support ahead of 1.0900, the psychological number and then the price may observe support around 1.0879, the low of October 01, 2019 as shown in the graph below

EURUSD

Coming towards the upside, the price is likely to hit the resistance level around 1.1048, an immediate trend line resistance. Another resistance may come across around 1.1082, the 38.2% Fib level ahead of 1.1208, the key horizontal resistance level as shown in the graph above. The technical bias may remain bearish as long as 1.1082, the major horizontal resistance level remains unchanged.

European Economic Sentiment News

The Zentrum für Europäische Wirtschaftsforschung has recently put forward figures concerning the economic sentiment. The figure represents an estimation of the sentiment of institutional investors showing the differential value of the shares being held by optimistic shareholders and those having a pessimistic view. If a figure remains positive then this means that shares of optimists have outnumbered the shares of pessimists and vice versa.

Generally speaking, an optimistic view is considered as an indication of a bullish market for the Euro (EUR) whereas a pessimistic approach suggests a bearish market for the Euro (EUR).

Conclusion

Considering the price behavior of the pair over the past few days, selling the pair around current levels may be a good decision in the short to medium term. However, those who wish to hold a long position should avoid trading EUR/USD until the trend changes.

 

By Desislava Yunakova
Desi was one of our financial journalist trainee, someone who's now moved on to be a Strategic Analyst at Whirlpool.
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