Facebook
 
 

21.10.202009:23 Przeglądy analityczne: Brief trading recommendations for EUR/USD on 10/21/20

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

*Prezentowana analiza rynku ma charakter informacyjny i nie jest przewodnikiem po transakcji.

Zarób na rekomendacjach analityka już teraz
Zasil konto handlowe
Otwórz konto handlowe w InstaForex

Dzięki analizom InstaForex zawsze będziesz na bieżące z trendami rynkowymi! Zarejestruj się w InstaForex i uzyskaj dostęp do jeszcze większej liczby bezpłatnych usług dla zyskownego handlu.

Nie możesz teraz rozmawiać przez telefon?
Zadaj pytanie na czacie.