EUR/USD: technical analysis 03.10.2019
EUR/USD is in the stage of downward correction after raising to the level of 1.09646. At the moment the price has met the support at the level of 1.09558 (Murray [3/8]). Assuming the pair’s ability to cross this level, the mark of 1.09406 can be targeted if holding short positions. Pair’s sustained trading below the 1.09406 will let the price fall to the 1.09253 (Murray [2/8]), which is the key target of downward correction.
Alternative scenario. If the "bulls" manage to raise the rate above the level of 1.09646, the growth can continue to the area of 1.09711, that holds the gate for its rise to 1.09863 (Murray [4/8]) resistance-line. There is a chance of an downward rebound, while its breakout would allow the growth to continue to the area 1.10168 (Murray [5/8]). Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are diverging on the background of bullish momentum. The volumes of MACD histogram are growing in the positive zone. Stochastic is in the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 1.09558, 1.09406, 1.09253.
Resistance levels: 1.09646, 1.09711, 1.09863.
Short positions can be opened below the level of 1.09558 with the target at around 1.09406-1.09253 and stop-loss 1.09658.
Long positions can be opened above the level of 1.09646 with the target at around 1.09711-1.09863 and stop-loss 1.09573.