Forex Trading: EURUSD Technical Analysis – October 18, 2019

The Euro (EUR) inched lower on Friday against the US Dollar (USD), which resulted in a drop in EURUSD’s price taking it to less than 1,1200. The pair’s price decreased following the release of major economic news. Given the pair’s price movement over the past few days, the technical bias is expected to turn bullish because the pair’s price has been lower high in the recent downside move.

EUR/USD Technical Analysis

Currently, the pair is being traded around 1.1117, The support that serves as a contingency mechanism to keep the price from further dropping can be seen about 1.0181, the immediate main horizontal support ahead of 1.1083, the 23.6% Fib level and then a while, trendline support of 1.0975, as shown in the graph.

EURUSD

On the upside, A resistance that may stop it from going above this point can be seen at 1.1144, an immediate horizontal resistance, sometime later at 61.8% Fib level, resistance of 1.12931 and then at 1.1206, a trendline resistance is shown in the graph above. The technical bias may remain bearish as long as 1.1114, the major horizontal resistance level stays unblemished.

USD Business Inventories

In the United States, the figure concerning the business inventories has fallen to 0.0%,  in this month downbeat with the economist expectation and a month before the figure i.e 0.3% and 0.2% respectively. The data is sourced from the news released by the US Census Bureau.

The company inventories assess manufacturers, dealers, and wholesalers ‘ monthly percentage increases in inventories. The estimates for sales do not push the markets because they do not represent personal consumption

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 good decision in the short to medium term.

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