Technical Analysis of EUR/USD for October 6, 2020

Technical Analysis of EUR/USD for October 6, 2020

Technical Market Outlook:

The EUR/USD pair has moved higher towards the level of 1.1790 and made a new local high at the level of 1.1798. The target for bulls is seen at the level of 1.1822, which is a 61% Fibonacci retracement on the weekly time frame. Please notice, the market conditions are overbought again despite the strong and positive momentum, so the pull-back is coming soon. The nearest technical support is seen at the level of 1.1752. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 – 1.1938

WR2 – 1.1852

WR1 – 1.1782

Weekly Pivot – 1.1691

WS1 – 1.1632

WS2 – 1.1548

WS3 – 1.1473

Trading Recommendations:

Since the middle of March 2020 the main trend is on EUR/USD pair has been up, which can be confirmed by almost 10 weekly up candles on the weekly time frame chart and 4 monthly up candles on the monthly time frame chart. Nevertheless, weekly chart is recently showing some weakness in form of a several Pin Bar candlestick patterns at the recent top. This means any corrections should be used to buy the dips until the key technical support is broken. The key long-term technical support is seen at the level of 1.1445. The key long-term technical resistance is seen at the level of 1.2555.

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