Technical analysis of EUR/USD for October 30, 2018

EUR/USD got rejected yesterday at the medium-strength resistance area of 1.1420 and fell below short-term support of 1.1385. Prices remain below 1.14 in a bearish trend and as long as we are trading below yesterday highs, I remain short-term bearish as well expecting a break below 1.13.

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Black dots - medium strength resistance

Red dots - maximum strength resistance.

Price continues to be in a bearish trend. Nothing has changed. Only a break above short-term resistance of 1.1420 could provide a bigger bounce maybe towards 1.1460 or even 1.15. Support is at 1.1335. Despite price making new lows last week, the RSI did not and we have our first divergence in the 4-hour chart. We also have a bullish divergence in the daily chart, but I believe we will need to see one more and a new lower low in price below 1.13 to complete the decline from 1.25. A key reversal point is at 1.1620 and as long as we trade below it, we will continue to sell rallies.

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