Weekly review on EUR/USD for October 23-27:

The EUR/USD pair was argumentative as it was trading in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 1.0534 and 1.0780. Resistance and support are seen at the levels of 1.0780 (also, the double top is already set at the point of 1.0780) and 1.0636 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed.

The current price is seen at 1.0691 which represents a key level today. The level of 1.0725 will act as the first resistance today. Consequently, there is a possibility that the EUR/USD pair will move downside. The structure of a fall does not look corrective. In order to indicate a bearish opportunity below the spot of 1.0725 - 1.0748, The level of 1.0725 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend.

Overall, we still prefer the bearish scenario. Hence, if the pair fails to pass through the level of 1.0725, the market will indicate a bearish opportunity below the strong resistance level of 1.0725. Sell deals are recommended below the level of 1.0725 with the first target at 1.0670. If the trend breaks the support level of 1.0670, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.0636 so as to test the double bottom at the hourly chart.

The market is still in an downtrend. We still prefer the bearish scenario. In case a reversal takes place and the EUR/USD pair breaks through the support level of 1.0636, a further decline to 1.0603 can occur, which would indicate a bearish market. Overall, we still prefer the bearish scenario, which suggests that the pair will stay below the zone of 1.0725 today.

The EUR/USD pair hit the weekly pivot point and resistance 1, because of the series of relatively equal highs and equal lows. But, the pair has risen down in order to top at the point of 1.0588. Hence, the major support was already set at the level of 1.0545. Today, the EUR/USD pair has broken resistance at the level of 1.0588 which acts as support now. Thus, the pair has already formed major support at 1.0545.

The strong support is seen at the level of 1.0545 because it represents the weekly support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.0600 in the H1 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: EUR is in an uptrend and USD is in a downtrend. Buy above the major support of 1.0545 (this price is coinciding with the ratio of 50% Fibonacci) with the first target at 1.0640 , and continue towards 1.0675 (the weekly resistance 1).

On the other hand, if the price closes below the support (1.0545 ), the best location for the stop loss order is seen below 1.0545; hence, the price will fall into the bearish market in order to go further towards the strong support at 1.0494 to test it again. Furthermore, the level of 1.0450 will form a double bottom.