Forex Trading Technical Analysis (EUR/USD) – October 22, 2019

Forex Trading Technical Analysis (EUR/USD) – October 22, 2019

The Euro (EUR) inched higher against the US Dollar (USD) on Tuesday, increasing the price to more than 1.1100, following a major economic release. The technical bias might remain bullish because the pair marked a lower high in the recent downside move.

EUR/USD Technical Analysis

As of this writing, the pair is being traded around 1.1152, A resistance may be noted around 1.1208, the 23.6% Fib level resistance ahead of 1.1300, the psychological number and then 1.1412, the high of June 25, 2019, comes in place thereby resisting the price to stay below the said level as shown in the graph below.    

EURUSD

Talking about the downside, support may come around at 1.1082, the major horizontal support level. Another support is likely to hit the price at 1.1047, the trend line support and then 1.1004,  the confluence of a horizontal and trend line support may act as strong support helping the price to stay above the said level as shown in the graph above. The technical bias may remain bullish as long as 1.1082, the key horizontal support remains intact. 

European Monetary Union Consumer Price Index – Core Release

The Eurostat released stats with respect to the core consumer price index recently. According to the stats, it remained the same this month, as it was during the month before, exactly meeting the economist expectations having no change at all.  

The CPI index represents the net change in prices of various retail products after comparing them on sample basis. It is to be notified that the comparison is done by selecting non-volatile items to arrive at the accurate calculation. The CPI is considered as one of the key indicators of the country’s economy and has significant potential to trigger inflation. Generally speaking, a high reading is considered a bullish trend for the Euro (EUR) whereas a low reading implies a bearish market for the Euro (Eur) ahead.  

Conclusion

Considering the price behavior of the pair over the past few days, buying EURUSD around current levels may be a good decision in the short to medium term. It is likely to continue moving upwards, therefore, opening long positions may also work as well.  

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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