Technical Analysis of EUR/USD for November 11, 2020

Technical Market Outlook:

The EUR/USD pair has tested the key technical resistance located at the level of 1.1908 - 1.1914 and then the rally was capped at the level of 1.1920. The market is currently trading in a horizontal manner, around the level of 1.1822, but there was a low made at the level of 1.1795 already. This recent price action looks like a right shoulder of a Head and SHoulders price pattern in progress. The local support for intraday traders is seen at the levels of 1.1789 and 1.1803, but if one of this level is violated, then the road towards the next support located at the level of 1.1695 is open. Please notice the market is coming off the overbought conditions, so the pull-back lower should continue.

Weekly Pivot Points:

WR3 - 1.2308

WR2 - 1.2092

WR1 - 1.2015

Weekly Pivot - 1.1812

WS1 - 1.1717

WS2 - 1.1522

WS3 - 1.1441

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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