empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

21.10.202009:23 Forex Analysis & Reviews: Brief trading recommendations for EUR/USD on 10/21/20

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 21.10.2020 analysis

The upward movement of the price of the EUR/USD pair resumed yesterday, as a result of which the local high (1.1830) on October 9 was broken. Moreover, the euro got another chance to recover from the September decline – 1.2011 ---> 1.1612.

Here, several technical factors acted as trading signals of upward development. I suggest you consider the following:

1. The lack of price consolidation below the support level of 1.1700 and the local high of 1.1610, betrays buyers' confidence.

2. A price consolidation above the range level of 1.1810, which coincided with the local high (1.1830) on October 9, gives buyers confidence.

In regards with the quote's current location, you can see that the quote updated yesterday's high of 1.1840 during the Asian session, which favors long positions (buy positions).

The only thing that worries many traders is that we have had an almost vertical price movement since this week began. This can lead to overbought and a technical correction (1.1700 ----> 1.1850).

Based on the quote's location and the upward movement, we can consider trading forecasts from a number of possible market scenarios.

First scenario: Buyers' continuation of growth

Consistent growth can lead the quote to the area of 1.1870/1.1900, where there is a sharp stop and a volume reduction. But this scenario may affect the euro's price in terms of its weakening.

Second scenario: Overbought as a result

It was noted above that a rapid increase can lead to a technical pullback/correction, in this case, in the direction of the previously overcome level 1.1810.

Exchange Rates 21.10.2020 analysis

Gven Podolsky
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off