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EUR/USD Began The Week With Positive Momentum But Did Not Sustain It

ByORBEX
Published 10/20/2014, 03:53 AM
Updated 08/29/2019, 07:20 AM


During the first half of the week EUR/USD had a positive momentum gaining some 260 pips; however the pair could not sustain its momentum in the second half of the week and gave some 110 pips of its weekly gains back. The pair broke its long-lasting bearish channel and found resistance at 1.2880 level where 20 day SMA (red line) lies as well. On weekly timeframe RSI also closed the week at 30 level which indicates a possibility of another resistance level or possible bearish movement.

EUR/USD Daily Chart


From smaller time frame point of view, on Friday the 17th of October the pair could not break through its resistance at 1.2830 levels which is also SMA100 and traded between SMA50 and SMA100 indicating indecisiveness of the market. Meanwhile, at the time of the analysis RSI is in its neutral zone, MACD indicates possible bearishness, SMA100 still slowing down, however SMA 20 indicates bullishness and SMA 50 is flat.

EUR/USD 4 Hour Chart



Expectations for the upcoming week (Oct 20th - Oct 24th):
The pair broke its two months long bearish channel however all the moving averages (SMA20, SMA 50 and SMA100) are still all above current price levels and all sloping down; however MACD is indicating possible bullish signals. Before forming a new uptrend, the pair is expected to test Support 1 at 1.2690 levels. However, in case resistance 1 level is broken we may expect the pair rise towards its psychological resistance level of 1.30.

Resistance levels: 1.2860, 1.3000 and 1.3120
Support levels: 1.2690, 1.2590 and 1.2500

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