Technical Analysis of EUR/USD for October 29, 2020

Technical Market Outlook:

The bearish pressure intensify on the EUR/USD as the market makes a new local low at the level of 1.1718 and breaks below the key short-term Fibonacci retracement seen at the level of 1.1761. The bounce from the target level at 1.1724 was shallow and was capped around the level of 1.1759 (lower channel line resistance). Weak and negative momentum supports short-term bearish outlook despite the oversold market conditions. The next target for bears is seen at the level of 1.1710 and 1.1696.

Weekly Pivot Points:

WR3 - 1.2123

WR2 - 1.1991

WR1 - 1.1943

Weekly Pivot - 1.1823

WS1 - 1.1766

WS2 - 1.1638

WS3 - 1.1589

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. The recent correction towards the level of 1.1612 seems to be completed and now market is ready for another wave up. This means any local 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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