EURUSD Technical Analysis, October 12, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


Technical Outlook:

EURUSD bulls have remained on control since the last few trading sessions and managed to push prices above 1.1800 handle again. The currency trades around 1.1815 levels for now and might push through 1.1840/50 mark as well, before finding resistance again.

EURUSD might be working on a lower degree wave ii within Wave 3 or could be producing an A-B-C rally that might push above 1.1900 handle. At the moment the currency is seen to be stalling around 1.1810/20, the fibonacci 0.618 retracement of the drop between 1.1915 and 1.1610.

A bearish reversal from here might be possible and push prices below 1.1600 handle. It would confirm that EURUSD is working on an extended Wave 3 that probably begun from 1.1915 mark earlier. If the above holds well, we could witness a price drop through 1.1500 soon.

Earlier, EURUSD had rallied from 1.0636 through 1.2010 unfolding into 5 waves, making it an impulse wave. The above impulse could be retraced towards 1.1100 mark, which is also the previous Wave 4 termination point.

Further, the fibonacci 0.618 retracement of the above impulse wave is also seen through 1.1100/50 mark. Prices might be well supported if they drop through 1.1100/50 mark and bull might be back in control, resuming the long term rally.

On the alternate side, if the above impulse wave was a part of an expanded flat corrective wave, EURUSD might be preparing for a push below 1.0636 going forward.

Trading Strategy:

Short against 1.2010, target is 1.1100/50 at least.

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