The week ends with the EUR/USD posting a lower low for the year at 1.2485, holding a handful pips above it by London close. During the last 3 trading days, the pair gave up almost all of its October gains, ending the month finally in red. Therefore, the advance up to 1.2886 was barely corrective, and the pair is poised to extend its decline. Next week, fundamentals with also take center stage with the ECB monthly meeting and US Payrolls, but latest data and developments suggest there are little chances for a trend reversal.
Technically, the weekly chart shows indicators turned back south in oversold territory after limited corrections, while 20 SMA maintains a clear bearish slope well above current price, all of which supports the ongoing bearish strength. In the daily chart price failed to regain its 20 SMA, now around 1.2690, while indicators turned back lower below their midlines.
Price action will likely be choppy early next week, with upward corrections seen limited by above mentioned 1.2690, but selling higher will likely be the norm. Next strong support stands at 1.2440, and once below there’s not much in the way down to 1.2370, where the pair presents several weekly historical highs and lows. If the level gives up by next Friday, 1.2000 becomes the next realistic target in the pair.
The 1.2620 price zone comes as immediate resistance and first strong selling level, followed by 1.2690. A price acceleration above it should signal another round of short covering and profit taking, base of an upward correction up to 1.2780 price zone, the land in the sand for the ongoing bearish trend.
View Live Chart for EUR/USD
Technically, the weekly chart shows indicators turned back south in oversold territory after limited corrections, while 20 SMA maintains a clear bearish slope well above current price, all of which supports the ongoing bearish strength. In the daily chart price failed to regain its 20 SMA, now around 1.2690, while indicators turned back lower below their midlines.
Price action will likely be choppy early next week, with upward corrections seen limited by above mentioned 1.2690, but selling higher will likely be the norm. Next strong support stands at 1.2440, and once below there’s not much in the way down to 1.2370, where the pair presents several weekly historical highs and lows. If the level gives up by next Friday, 1.2000 becomes the next realistic target in the pair.
The 1.2620 price zone comes as immediate resistance and first strong selling level, followed by 1.2690. A price acceleration above it should signal another round of short covering and profit taking, base of an upward correction up to 1.2780 price zone, the land in the sand for the ongoing bearish trend.
View Live Chart for EUR/USD
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