EURUSD Limited Below 200-Day Moving Average. Analysis For October 30, 2020
ECB President Christine Lagarde mentioned yesterday that the regulator was considering the introduction of new monetary stimulus measures in December. The ECB also anticipates that interest rates will remain at current levels or lower until the inflation outlook adapts to the the bank’s target. Seeing this, we can suggest a medium-term fall of EUR/USD to the 1.14 level as a target in the coming weeks.
At a technical level, we can see that EUR / USD fell below the 200-day moving average. Yesterday in our analysis, we indicated that you should be watching this level for sell positions. The ECB news supported that downward pressure.
Our recommendation for today is to sell in the 0/8 zone of the Murray line, or around 1.1740, which would imply a further fall to the levels of 1.1650 and 1.1589. On the other hand, you can see the Fibonacci fan on the chart. The price is likely to bounce to the 38.2 and 50% Fibonacci level that is the zone where you can prepare to sell if the pair does not maintain its bullish strength. We can also see that the eagle indicator continues to show a bearish signal in the short term.
Analyzing the market sentiment, there are 55% of buyers of EURUSD. This shows that there may be more downward pressure in the market, up to the 1.1550 zone in the short term.
Our key levels are:
Sell around 1.1740 bellow EMA 200 with take profit at 1.1689 and 1.1633
The material has been provided by InstaForex Company – www.instaforex.com