EUR/USD Threatens Key Support At 1.0800

FXOpen

Euro (EUR) rose moderately against the US Dollar (USD) on Friday, increasing the price of EUR/USD to more than 1.0970 following the release of US pending home sales data. The technical bias remains bearish because of a Lower Low in the ongoing wave.

Technical Analysis

A closer view of the 4H chart has been presented here which is highlighting the multi month trend line bounce around 1.0900 levels. Please note that the pair still remains vulnerable and needs to clear through initial resistance at 1.1100 levels to confirm that a 3 wave recovery is underway towards 1.1265 levels.

EURUSDH4

Also note that the RSI that was showing bullish divergence has turned higher for now and potential remains to push through 70 levels, before turning lower.

Immediate support is seen through 1.0900 levels (interim), followed by 1.0800 and lower, while resistance is seen through 1.1100/1.1125 levels, followed by 1.1375, 1.1490 and higher respectively. The pair remains cautiously bullish for now, till prices stay above 1.0900 levels.

US Homes Sales

The number of existing homes that went under contract across the U.S. fell last month, a sign of choppiness in a housing market that otherwise appears to be gaining momentum. Pending home sales—which measure purchases before they become final—declined 2.3% to a seasonally adjusted reading of 106.8 in September, the National Association of Realtors said Thursday. That marked the second-lowest level of the year and the second consecutive monthly drop. Economists had predicted a 1% rise in September sales.

Trade Idea

Aggressive trade setups encourage long positions, with risk below 1.0900 levels.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

USD/CAD Rate Reaches Significant Support Level Dollar Declines: How Deep Could the Correction Be? USD/JPY Analysis: Rate Rises Above 159.9 Yen per Dollar SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead?

Latest articles

Forex Analysis

USD/CAD Rate Reaches Significant Support Level

On June 12, we wrote about bearish signs observed on the USD/CAD chart, pointing to the prospect of USD weakening.

Since then, the USD/CAD rate has decreased by approximately 0.75% and has reached an important support level,

Indices

Nasdaq 100 Index Failed to Hold Above 20,000 Points

On 18th June, we reported that the Nasdaq 100 (US Tech 100 mini on FXOpen) market had recorded a historic high by surpassing the psychological level of 20,000.

At that time, we pointed to the upper line of the

Forex Analysis

Dollar Declines: How Deep Could the Correction Be?

By the end of last week, the American currency traded rather mixed:

  • The USD/JPY currency pair strengthened by more than 200 pips and almost tested the significant resistance level at 160.00.
  • The USD/CAD pair failed to break
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.