HomeAnalysis NewsForex Trading: EURUSD Technical Analysis – November 01, 2019

Forex Trading: EURUSD Technical Analysis – November 01, 2019

1 November 2019 By Galina Mikova

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 1.1150, The support that serves as a contingency mechanism to keep the price from further dropping can be seen about 1.1082, the immediate  38.2% Fib level ahead of 1.1066, trendline support and then a while main horizontal support of 1.0930, as shown in the graph.

EURUSDOn the upside, a resistance that can stop it from going above this point can be seen at 1.1208, the 61.8% Fib level, sometimes later, the resistance of 1.1241, the coincidence of two trendlines, and then at 1.1410, the graph above shows major horizontal resistance. The technical bias may remain bearish as long as 1.1208 stays unblemished, the strongest level of horizontal resistance.

EUR Unemployment Rate

The Bundesagentur für Arbeit released the news on the unemployment rate in Germany and reported by the German Statistical Office shows that this month’s rate remains at 5 percent, equivalent to the last month’s rate and the forecasts of the economist.

The unemployment rate indicates, using seasonally adjusted data, the number of unemployed people in Germany. A decrease in this indicator has positive effects on consumer spending which promotes economic growth. Normally, a drop in the figure for the EUR is bullish.

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.