07.10.201912:38 Forex Analysis & Reviews: Technical analysis of EUR/USD for October 07, 2019

Overview:

The EUR/USD pair fell from the level of 1.0934 to bottom at 1.0878 since last week.

But, we note clearly that the saturation set around the area of 1.0878.

So, the strong support has been already faced at the level of 1.0878 and the pair is likely to try to approach it in order to test it again and form a double bottom.

However, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100).

The EUR/USD pair is continuing to trade in a bullish trend from the new support level of 1.0934; to form a bullish channel.

According to the previous events, we expect the pair to move between 1.0934 and 1.0878.

Also, it should be noted major resistance is seen at 1.1067, while immediate resistance is found at 1.1024. .

Moreover, if the pair succeeds in passing through the level of 1.0934, the market will indicate a bullish opportunity above the level of 1.0934.

A breakout of that target will move the pair further upwards to 1.0969. Buy orders are recommended above the area of 1.0934 with the first target at the level of 1.1024; and continue towards 1.1067. Then, we may anticipate potential testing of 1.1067 to take place today.

On the other hand, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 1.2584.