Relevance up to 05:00 2021-10-28 UTC–4
Yesterday, the bears attempted to break through the historical support of 1.1602, but today, the euro is trading again in the attraction and influence zone of this level. Conclusions and expectations remain the same. The breakdown of the level of 1.1602 will open the way to 1.1558 (the lower border of the weekly cloud) and further to the unification of monthly support levels at 1.1516 – 1.1494. On the other hand, the formation of rebound from 1.1602 will allow us to return and test again the strength of 1.1664. The nearest resistance and influence may be exerted by the levels of the daily cross 1.1621 (Tenkan) and 1.1640 (Kijun).
The main advantage in the smaller timeframes remains on the bears’ side. At the moment, they are testing the central pivot level (1.1602). Further, it will be crucial to break through the resistance of the long-term weekly trend (1.1624) and reverse the moving average. After that, the current advantage on the hourly chart will turn to the bulls’ side.
Today, other intraday upside targets can be set at 1.1643 (R2) and 1.1660 (R3). The formation of a rebound from the encountered resistances (1.1602) will return the relevance to the supports of the classic pivot levels, which are now at 1.1578 – 1.1561 – 1.1537.
The situation has not changed over the past day. Bullish traders failed to test the resistances of 1.3830 (monthly short-term trend + weekly medium-term trend) again. According to yesterday’s result, the pair remained in the attraction zone of the daily cloud (1.3777). Today, there is another attempt to go beyond the previous consolidation zone, so the bearish traders started testing the support level of 1.3731. At an approximately equal distance, there are supports that unite the levels of the daily and weekly charts at 1.3695 and 1.3661.
As mentioned above, bearish traders still have the advantage in the smaller timeframes. They marked a low and continued to move downward. The next intraday support may be the levels of 1.3710 (S2) and 1.3663 (S3). The key levels joined forces at 1.3782 (central pivot level + weekly long-term trend). It is worth noting that a consolidation above will change the current balance of power. In this regard, the resistances of the classic pivot levels at 1.3809 – 1.3856 – 1.3882 will be considered.
Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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