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18.10.201813:32 Forex Analysis & Reviews: The forecast for EUR / USD for October 18, 2018

Long-term review

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EUR / USD

Political instability in Europe and the Middle East continues to expand, which favorably affects the dollar. The European Commission rejected the draft budget of Italy for 2019, Angela Merkel said that Germany is preparing for a tough Brexit, the US is considering imposing sanctions against Saudi Arabia over the murder of a journalist.

Data on construction in the US were worse than expected; the number of new housing starts in September was 1.20 million against 1.22 million, and the issued permits for the construction of a new house amounted to 1.24 million against a forecast of 1.27 million. Stock indices fell slightly.

The euro fell by 74 points and made its way under the indicator line of the trend on a daily scale. A similar fixation under the Kruzenshtern line also occurred on the four-hour chart. Now, the price can move lower. It seems that the graphics trend line embedded in the price channel of the higher timeframe, and will not have a strong obstacle in the current situation. A stronger support is at least as of October 9, at 1.1432, since historically in the period from 2015, more price reversals have occurred near this level. Overcoming support will open the way to a further decline by 1.1300.

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