EUR/USD technical analysis: There has been a textbook retest of the previous wave low


  • EUR/USD trades flat this morning as there is a a lack of key drivers to inspire volatility.
  • Yesterday the previous wave low provided some resistance for a move lower.

4-Hour Chart

The EUR/USD completed a bearish test of the previous wave low on the 4-hour chart

After falling on a positive risk rally EUR/USD could not recover past the 1.1071 resistance zone.

This has now set up a bearish scenario as the price is now making lower highs and lower lows on the 4-hour timeframe.

We could, of course, find some support closer to the 1.10 psychological support level but it remains to be seen if the price can break that much lower.

On the bulllish side, there is also a divergence forming on the RSI indicator which could show some signs of a momentum slowdown.

The price made a lower low while the indicator made a higher low (maked by the red lines). This could potenially mean in the short term we have run out of downside momentum.

EURUSD technical analysis

 

Headlines this morning 

The German trade balance improves this morning and printed at Eur 19.2 billion vs the expected Eur 18.1 billion for September.

France, however, failed to make the same headway as unfortunately, these missed on expectations as the -Eur 5.6 billion deficit was more than the anticipated -Eur 4.8 billion reading.

French Non-Farm Payrolls improved for Q3 showing a rise of 0.3% vs the previous of 0.2%.

There were also some comments from ECB's Vasle who said the ECB is determined to continue with its current policy until conditions improve.

Additional levels

EUR/USD

Overview
Today last price 1.1048
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.1046
 
Trends
Daily SMA20 1.1102
Daily SMA50 1.104
Daily SMA100 1.1119
Daily SMA200 1.1191
 
Levels
Previous Daily High 1.1092
Previous Daily Low 1.1036
Previous Weekly High 1.1176
Previous Weekly Low 1.1074
Previous Monthly High 1.118
Previous Monthly Low 1.0879
Daily Fibonacci 38.2% 1.1057
Daily Fibonacci 61.8% 1.107
Daily Pivot Point S1 1.1024
Daily Pivot Point S2 1.1002
Daily Pivot Point S3 1.0968
Daily Pivot Point R1 1.108
Daily Pivot Point R2 1.1114
Daily Pivot Point R3 1.1136

 

 

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