22.10.202116:15 Forex Analysis & Reviews: EUR/USD Hot Forecast for October 22

Exchange Rates 22.10.2021 analysis

The persevering selling pressure on the greenback helps EUR/USD to advance to the area of daily highs near 1.1650 on Friday. The data from the US showed on Friday that the economic activity in the private sector continued to expand at a robust pace in early October.

Mirroring EUR/USD's indecisiveness in the near term, the Relative Strength Index (RSI) indicator is moving sideways a little above 50 on the four-hour chart.

On the downside, the initial support is located at 1.1620 (Fibonacci 23.6% retracement of September downtrend). A daily close below that level could open the door for another leg lower towards 1.1600 (psychological level, 100-period SMA) and 1.1560 (static level).

As mentioned above, 1.1670 (Fibonacci 38.2% retracement, 200-period SMA) aligns as a significant hurdle. With a decisive break above that level, 1.1700 (psychological level) and 1.1720 (Fibonacci 50% retracement) could be targeted.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Jan Novotny,
Analytical expert of InstaForex
© 2007-2021
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