Technical Analysis of EUR/USD for October 7, 2020

Technical Market Outlook:

The EUR/USD pair has reversed the recent gains after the level of 1.1803 had been hit. The bears have managed to push the price lower towards the technical support located at the level of 1.1753 - 1.1738 and are getting closer to the trend line support. The next target is seen as well at the level of 1.1710 - 1.1696. The overbought market conditions and weak momentum support the short-term bearish outlook.

Weekly Pivot Points:

WR3 - 1.1938

WR2 - 1.1852

WR1 - 1.1782

Weekly Pivot - 1.1691

WS1 - 1.1632

WS2 - 1.1548

WS3 - 1.1473

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. 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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The material has been provided by InstaForex Company - www.instaforex.com