Technical Analysis of EUR/USD for October 23, 2020

Technical Market Outlook:

The EUR/USD pair has been moving lower in a corrective cycle after the local high was made at the level of 1.1880. The bears have managed to push the price towards the 50% Fibonacci retracement level, but that might not be the end of the correction. There is one more Fibonacci level seen at 1.1761 which might be hit as well, because the market is coming off the overbought conditions and it is not even close to the bottom just yet. The nearest technical support is seen at the level of 1.1790.

Weekly Pivot Points:

WR3 - 1.1924

WR2 - 1.1873

WR1 - 1.1783

Weekly Pivot - 1.1733

WS1 - 1.1641

WS2 - 1.1593

WS3 - 1.1509

Trading Recommendations:

Since the middle of March 2020 the main trend is on EUR/USD pair has been up, which can be confirmed by almost 10 weekly up candles on the weekly time frame chart and 4 monthly up candles on the monthly time frame chart. Nevertheless, weekly chart is recently showing some weakness in form of a several Pin Bar candlestick patterns at the recent top seen at the level of 1.2004. This means any corrections should be used to buy the dips until the key technical support is broken. The key long-term technical support is seen at the level of 1.1445. The key long-term technical resistance is seen at the level of 1.2555.

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