October 2, 2020 : EUR/USD Intraday technical analysis and trade recommendations.
The EURUSD pair has failed to maintain enough bearish momentum below 1.1150 (consolidation range lower zone) to enhance further bearish decline.
Instead, bullish breakout above 1.1380-1.1400 has lead to a quick bullish spike directly towards 1.1750 which failed to offer sufficient bearish pressure.
Bullish persistence above 1.1700-1.1760 favored further bullish advancement towards 1.1975 where some considerable bearish rejection has been demonstrated.
The price zone around 1.1975-1.2000 ( upper limit of the technical channel ) constituted a SOLID SUPPLY-Zone which offered bearish pressure.
Intraday traders should have considered the recent bearish closure below 1.1700 – 1.1750 as an indicator for a possible bearish reversal.
The price zone of 1.1775-1.1850 remains a solid SUPPLY Zone to be considered for bearish reversal upon any upcoming bullish pullback by Intermediate-term traders.
Trade recommendations :
Conservative traders should wait for the current bullish pullback to pursue towards the recently-broken DEMAND Zone around 1.1800 – 1.1850 for a valid SELL Entry.
T/P levels to be located around 1.1770, 1.1645 and 1.1600 while S/L to be placed above 1.1860 to minimize the associated risk.
The material has been provided by InstaForex Company – www.instaforex.com