Technical analysis of EUR/USD for October 23, 2017

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Overview:

  • Last week, the EUR/USD pair fell from the level of 1.1836 towards 1.1716. However, the trend rebounded to the key level around the spot of 1.1873/1.1800. Right now, the price is set at 1.1804. The resistance is seen at the levels of 1.1836 and 1.1911. Volatility is very high for that the EUR/USD pair is still expected to be moving between 1.1836 and 1.1716 in coming hours. In the short term, we expect the EUR/USD pair to continue to trade in a bearish trend from the new resistance level of 1.1836 to form a bearish channel. Also, it should be noted that the major resistance is seen at 1.1911, while immediate resistance is found at 1.1836. According to the previous events, the pair is likely to move from 1.1836 towards 1.1716 and 1.1657 as targets. Let's now take a look at the H1 time frame. If the pair succeeds to pass through the level of 1.1836, the market will indicate a bullish opportunity above the level of 1.1836. So, the market will rise further to 1.1911 in order to return to the resistance 2. Moreover, a breakout of that target will move the pair further upwards to 1.1994. Also, it should be noted that the double top is seen at the point of 1.2031.
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