EUR/USD: technical analysis 17.10.2019Published: 17 October 2019
EUR/USD quotes attempted to grow, but reaching 1.10852 mark moved to a downard corrcretion. If the sellers manage to decline the rate below the level of 1.10745, the correction can continue to the area of 1.10626-1.10474. The area of 1.10370 will be a key zone for the shor term sellers.
Alternative scenario. The upward trend will be restored after the price is set above the level of 1.10852. In this case, the buyers will ai for level of 1.11084 resistance, which seem a key level.
There is a chance of an downward rebound, while its breakout would accelarete the upward trajectory in direction of level 1.11389. Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. MACD is growing in the positive zone. Bollinger Bands are diverging on the background of bullish momentum. However, as the Stochastic is in the oversold area, and the price has broken the upper border of Bollinger Bands, the downward correction is not excluded.
Support and resistance
Support levels: 1.10779, 1.10626, 1.10474.
Resistance levels: 1.10745, 1.11084, 1.11389.
Long positions can be opened above the level of 1.10852 with the target at around 1.10625-1.10779 and stop-loss 1.10773.
Short positions can be opened below the 1.10779 of 1.10168 with the target at around 1.10626-1.10474 and stop-loss 1.10880.