29.10.202011:02 Forex Analysis & Reviews: Technical analysis of EUR/USD for October 29, 2020

• EURUSD Forex Chart

The major support of the EUR/USD has set at the level of 1.1718. So, horizontal support is not broken yet, probably we will see a strong bounce from the area of 1.1718.

So, the strong support has already faced at the level of 1.1718 and the pair is likely to try to approach it in order to test it again and form a double bottom.

Hence, the EUR/USD pair is continuing to trade in a bullish trend from the new support level of 1.1718; to form a bullish channel.

According to the previous events, we expect the pair to move between 1.1718 and 1.1807.

Also, it should be noted major resistance is seen at 1.1807, while immediate resistance is found at 1.1784. Then, we may anticipate potential testing of 1.1762 to take place soon.

Moreover, if the pair succeeds in passing through the level of 1.1734, the market will indicate a bullish opportunity above the level of 1.1734. A breakout of that target will move the pair further upwards to 1.1807.

Buy orders are recommended above the area of 1.1734 with the first target at the level of 1.1762; and continue towards 1.1784 and 1.1807.

This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50), Therefore, if the trend is able to break out through the first resistance level of 1.1734 , we should see the pair climbing towards the daily resistance at 1.1807 to test it.

On the other hand, if the EUR/USD pair fails to break out through the resistance level of 1.1807; the market will decline further to the level of 1.1718 so as to return to this last bearish wave. Overall, we still prefer the bullish scenario.

Risk management strategy :

• - Take profit = 119 pips and Stop loss = 49 pips.
• - Take profit = X.Stop loss <-> X = Take profit / Stop loss <-> 119/49 = 2.43.
• - Risk reward ratio of 1:2.43 is recommended.

Please do not risk any money with any of my strategies before you have proven that you do comprehend it and trade it successfully on demo at least two months. Do not try to retaliate against the market because certainly it will conquer you.