16.10.202016:45 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on October 16, 2020


Exchange Rates 16.10.2020 analysis

The end of the week approaches. The pair spent the current week within the previously indicated limits, remaining within the limits of 1.1811 (weekly Tenkan) and 1.1688 (monthly Senkou span A). The center of gravity remains the daily cross of 1.1760 (Tenkan + Kijun). At the moment, another test of 1.1688 has again triggered a slowdown. In the remaining time before closing, the question of the length of the lower shadow of the weekly candle is decided. A small shadow or lack of it can inspire players to go down to overcome the support of 1.1688. A long shadow and a return to the center of gravity of 1.1760 will add uncertainty and keep thoughts in the range of 1.1811 – 1.1688.

Exchange Rates 16.10.2020 analysis

An upward correction is currently developing on the lower timeframes. The bulls during the day managed to capture the Central Pivot level (1.1717), and as a result, the next important benchmark is 1.1761 (weekly long-term trend), the intermediate resistance is 1.1747 (R1). The analyzed technical indicators support the strengthening of bullish sentiment. The result of this correction and its consequences can be assessed as early as next week.


Exchange Rates 16.10.2020 analysis

The fight continues. The bearish traders on the downside again returned the situation to the important supports of this section 1.2943 – 1.2878 (daily cloud + daily cross + weekly Fibo Kijun), continuing to insist on leaving the daily cloud in the bearish zone and eliminating the daily golden cross. Successful closing of the week – the formation of a pronounced rebound from the weekly short – term trend will direct bearish expectations to test the next important milestone of 1.2777-1.2711 (weekly Kijun + monthly Fibo Kijun). The lack of success and the closing of the current week in the daily cloud (above 1.2943) will most likely lead to continued uncertainty and prepare the ground for a new test of 1.3076 (weekly short-term trend).

Exchange Rates 16.10.2020 analysis

On H1, we observe the development of a corrective movement. The key levels of the Central Pivot (1.2941) and the weekly long-term trend (1.2984) form the current resstance zone and maintain the main advantage on H1 on the side of players on the downside. Supports within the day are the classic Pivot levels 1,2854 – 1,2801 – 1,2714. Fixing above 1.2941-84 will change the preponderance of forces in the lower halves, as well as affect the weekly result.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

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

David Bale,
Analytical expert
InstaForex Group © 2007-2020
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