Friday, October 23, 2020

EUR / USD Rising Trend Ended?

 The price movement on the EUR / USD currency pair charts an early signal of a bullish pattern since the beginning of the week has ended.

The Euro currency remains trading at risk following an increase in cases of Coronavirus infection in Europe which will continue to affect the economic recovery.

However, the decline was seen to be driven by the strengthening of the US dollar after showing the depreciation of the US dollar since the beginning of the week.

Markets are still awaiting the results of the United States (US) economic stimulus package while the Presidential debate between Donald Trump and Joe Biden is in focus today.

Technically, the price on the EUR / USD chart which has moved below the Moving Average 50 (MA50) barrier level during the 1 hour time frame of the price movement gives an early signal of a bearish trend change in the European session yesterday.

The price decline continued in the Asian session this morning back to the RBS zone (resistance become support) at the level of 1.18000.

European economic data will be the focus that will affect the movement of the Euro currency over the weekend.

If the price moves lower below the RBS zone of 1.18000, a lower price drop is expected towards the level of 1.17200 and the support zone of 1.16900 which will wipe out the profit gained throughout the week.

However, if the price jumps again, the resistance zone with the level of 1.19000 will return to the next price target.