EUR/USD Price Analysis: Trades above 1.0850, teases descending channel breakout
- EUR/USD could return to the descending channel as a bearish bias is active.
- The pair could approach the "throwback support" near the psychological level of 1.0800.
- The nine-day EMA at 1.0897 appears as the immediate barrier.
EUR/USD inches lower to near 1.0860 during the Asian session on Monday. A review of the daily chart shows that the pair has breached the descending channel pattern. If it re-enters the channel, it could reinforce a bearish bias for the pair.
Additionally, the 14-day Relative Strength Index (RSI), a key momentum indicator, is slightly above the 30 level. A drop below this threshold would indicate an oversold condition, suggesting the possibility of an upward correction for the EUR/USD pair in the near future.
On the downside, if the EUR/USD pair re-enters the descending channel, it could approach the "throwback support" near the psychological level of 1.0800. A break below this key level could increase selling pressure, pushing the pair toward testing the lower boundary of the descending channel around the 1.0770 mark.
In terms of resistance, the EUR/USD pair may encounter an immediate hurdle around the nine-day Exponential Moving Average (EMA) at 1.0897, which is aligned with the psychological level of 1.0900. A break above this resistance could pave the way for the pair to explore the region around the major level of 1.1000.
EUR/USD: Daily Chart
(This story was corrected on October 21 at 08:10 GMT to say, in the last paragraph, that the EUR/USD pair may encounter an immediate hurdle instead of the EUR/GBP pair.)
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.04% | 0.08% | -0.18% | -0.02% | 0.07% | -0.07% | 0.06% | |
| EUR | -0.04% | -0.03% | -0.31% | -0.00% | 0.00% | -0.22% | -0.08% | |
| GBP | -0.08% | 0.03% | -0.27% | -0.09% | 0.00% | -0.15% | -0.07% | |
| JPY | 0.18% | 0.31% | 0.27% | 0.14% | 0.24% | 0.15% | 0.17% | |
| CAD | 0.02% | 0.00% | 0.09% | -0.14% | 0.00% | 0.01% | -0.06% | |
| AUD | -0.07% | -0.00% | -0.01% | -0.24% | -0.00% | -0.07% | -0.09% | |
| NZD | 0.07% | 0.22% | 0.15% | -0.15% | -0.01% | 0.07% | 0.08% | |
| CHF | -0.06% | 0.08% | 0.07% | -0.17% | 0.06% | 0.09% | -0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
