EUR/USD: Technical Analysis and Trading Recommendations_10/06/2021

 
 
 
 
 
 
 

After the EUR / USD broke through the long-term key support level 1.1630 (ЕМА200 on the weekly chart) at the end of last month, its decline accelerated in early October.

At the time of this posting, EUR / USD is traded near 1.1540, 60 pips below today's opening price. A decline in EUR / USD is gaining momentum towards the lower border of the descending channel on the weekly chart and the level 1.1400. The next downside target will be the support level 1.1285 (Fibonacci level 23.6% of the upward correction in the wave of the pair's decline from the level 1.3870, which began in May 2014, to the level 1.0500).

In an alternative scenario, and after the breakdown of the resistance level 1.1630 EUR / USD may resume the upward trend. However, only a breakdown of the key resistance level 1.1850 (ЕМА200 on the daily chart) will indicate a return of EUR / USD to the bull market.

So far, preference should be given to short positions.

Support levels: 1.1500, 1.1400, 1.1285

Resistance levels: 1.1630, 1.1665, 1.1710, 1.1724, 1.1749, 1.1780, 1.1850, 1.1900, 1.1950, 1.2065, 1.2180, 1.2260, 1.2340, 1.2450, 1.2580, 1.2600

Trading Recommendations

Sell Stop 1.1520. Stop-Loss 1.1580. Take-Profit 1.1500, 1.1450, 1.1400, 1.1285

Buy Stop 1.1580. Stop-Loss 1.1520. Take-Profit 1.1630, 1.1665, 1.1710, 1.1724, 1.1749, 1.1780, 1.1850, 1.1900, 1.1950, 1.2065, 1.2180, 1.2260, 1.2340, 1.2450, 1.2580, 1.2600