Forex Trading: EURUSD Technical Analysis- October 08, 2019

The Euro (EUR) inched higher against the US Dollar (USD) on Tuesday, this caused an increase in the price of EURUSD, bringing it more than 1.1000. The price of the pair increased after major economic news released. Considering the price movement of the pair over the past few days, it is foreseen that the technical bias may stay bearish on the grounds that the pair’s value denoted a higher low in the recent upside move

EUR/USD Technical Analysis

Currently, the pair is being traded around 1.0977,Moving toward the upside, a trend line resistance can be seen around 1.0986, ahead of 1.1019, the 38.2% Fib level and afterward comes 1.1107, the major horizontal resistance as shown in the given chart.

EURUSD

At 23.6% an immediate support level can be seen around 1.0966, ahead of 1.0947, the trend line support level and then the major horizontal support of 1.0878, which probably prevents the price from decreasing further as shown in the given above chart. The technical bias may remain bearish as long as 1.10986, the major horizontal resistance level remains intact.

US Producer Price Index

In the United States, the figure concerning the producer price index ex Food & Energy was 2.3% in the month before, that beating the economist expectation. The information is sourced from the news released by the Bureau of Labor Statistics, Department of Labor

The Producer Price Index ex Food and Energy estimate the normal changes in costs in essential markets of the US by makers of items in all conditions of handling. Those unpredictable items, for example, food and energy are avoided so as to catch an exact figuring. As a rule, a high perusing is viewed as positive (or bullish) for the USD, and vice-versa.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, buying the EURUSD around current levels can be a better decision in the short to medium term.

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