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EUR/USD: TECHNICAL ANALYSIS 22.10.2019

Current trend

EUR/USD continues to consolidate in the narrow side channel with the borders 1.11422-1.11563 after a significant growth over the last week. Now the instrument has the potential to further downward movement. If the sellers manage to decline the rate below the suport level of 1.11389, the downward movement can continue to the area of 1.11237-1.11084. The level of 1.11084 will be a key level for the sellers. There is a chance of an upward rebound, while its breakdown would allow allow the fall to continue to the area of 1.10779.
Alternative scenario.
If the instrument cannot consolidate below the level of 1.11389 the upward movement restoration and retest of the resistance zone 1.11694-1.11790 are possible. The decisive break of 1.11790 is needed to indicate up trend resumption. In this case, the next targets of buyers will be the level of 1.12000.
The technical picture is mixed. Bollinger Bands and Stochastci are pointed sideways. MACD volumes are decreasing in the positive zone, forming a weak sell signal.

Support and resistance

Support levels: 1.11389, 1.11084, 1.10779.
Resistance levels: 1.11694, 1.12000, 1.12305.

Trading recommendations

Short positions can be opened below the level of 1.11389 with the target at around 1.11084 and stop-loss 1.11490.
Long positions can be opened above the level of 1.11694 with the target at around 1.12000 and stop-loss 1.11594.

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