07.10.202113:10 Forex Analysis & Reviews: Technical analysis recommendations of EUR/USD and GBP/USD on October 7

EUR/USD

Yesterday, the bears were able to descend and test the first support level from the wide support zone of this area at 1.1538 (the lower border of the weekly cloud). Moreover, the encountered zone is strengthened by the levels of 1.1516 and 1.1494 (upper border of the monthly cloud + monthly medium-term trend). These are strong levels, so the result of the interaction is likely to determine the opportunities in the market for a fairly long term. We can note the 1.1602 (historical level) and 1.1628 (daily short-term trend) broken the day before as the nearest resistance levels.

The pair is making an upward correction on the smaller timeframes, which led to testing the key levels in the area of 1.1563 - 1.1587 (central pivot level + weekly long-term trend). A consolidation above will change the current balance of forces and on the hourly chart. The resistances of the classic pivot levels (1.1598 - 1.1639 - 1.1674) will become the pivot points. If the correction ends and the downward trend (1.1529) continues, the support of the classic pivot levels (1.1522 - 1.1487 - 1.1446) may come to the fore.

GBP/USD

The corrective growth marked a slowdown in the area of accumulation of levels 1.3601 - 1.3571 (historical levels + daily Tenkan and Fibo Kijun). Longer consolidation and continued uncertainty are possible. If the bulls manage to continue the rise, then the levels of 1.3661 (weekly short-term trend + daily medium-term trend), and 1.3721-31-52 (daily and weekly levels) will serve as pivot points.

On the contrary, if bearish prospects appear, it is necessary to balance the value and strength of the long lower shadow of the last weekly candle and go beyond the level of 1.3411.

There is only a minimal bullish strength on the hourly timeframe, but the main advantage continues to remain on their side. At the moment, the key support levels of 1.3584-63 (central pivot level + weekly long-term trend) are being tested, and reaching them determines the current balance of power. Today, the supports of the classic pivot levels are set at 1.3539 - 1.3497 - 1.3452, while the resistances of the classic pivot levels are now at 1.3626 - 1.3671 - 1.3713.

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.