16.10.202007:40 Forex Analysis & Reviews: Technical Analysis of EUR/USD for October 16, 2020

Technical Market Outlook:

The EUR/USD pair has made another lower low after it was rejected from the level of 1.1822. This is the 61% Fibonacci retracement level on the weekly time frame chart and had been tested many times in the past and even this time the bears were stronger than bulls again. The market has made the lower low at the level of 1.1692, just below the technical support seen at the level of 1.1696. Despite the oversold conditions, the momentum remains weak and negative, which support the short-term bearish outlook.

Weekly Pivot Points:

WR3 - 1.2004

WR2 - 1.1916

WR1 - 1.1875

Weekly Pivot - 1.1792

WS1 - 1.1756

WS2 - 1.1665

WS3 - 1.1629

Trading Recommendations:

Since the middle of March 2020 the main trend is on EUR/USD pair has been up, which can be confirmed by almost 10 weekly up candles on the weekly time frame chart and 4 monthly up candles on the monthly time frame chart. Nevertheless, weekly chart is recently showing some weakness in form of a several Pin Bar candlestick patterns at the recent top seen at the level of 1.2004. This means any corrections should be used to buy the dips until the key technical support is broken. The key long-term technical support is seen at the level of 1.1445. The key long-term technical resistance is seen at the level of 1.2555.