EURUSD Correction Sets in Towards 1.1807 Support Region After Exiting Overbought Conditions

EURUSD Price Analysis – October 22

The EURUSD pair exited overbought conditions and is ready to rally while correction sets in towards the 1.1807 regions. EURUSD has been keeping onto earnings arising from stimulus anticipation but foreign meddling in the US elections and increasing COVID-19 incidents may confine any earning.

Key Levels
Resistance Levels: 1.2150, 1.2011, 1.1917
Support Levels: 1.1807, 1.1612, 1.1422
EURUSD Long-term Trend: Ranging
The corrective downturn carries the potential for expansion to the 13 moving average, which is today at 1.1766, which is expected to initially contain the bearish move. In the broader scenario, the bullish outlook on EURUSD is expected to remain unchanged as long as the pair trades above the critical support of the ascending trend line, today at 1.1725.

In a broader context, the rise from 1.0635 is seen as the third phase of the trend from 1.0339 (low). Further, we should expect further growth to the cluster resistance at 1.2011. This will remain a preferable case as long as the 1.1422 resistance turned into support is held. Another visit to the 2020 high beyond the critical level of 1.20 is not welcome shortly.
EURUSD Short term Trend: Ranging
The intraday slope of EURUSD remains downward for now. Although the rebound from 1.1612 is still ongoing to retest the 1.2011 high. However, a strong break there will resume a stronger rally from the 1.0635 level. On the other hand, below 1.1807, minor support will initially make a neutral intraday bias.

The Relative Strength Index on the 4-hour chart fell below 70 values, emerging from an overbought condition. Key support is at 1.1760 low, followed by 1.1725, a step on the way up. The next levels to pay attention to are 1.1685 and 1.1612. Reaction along the support for the breakout will determine whether the move can be trusted.

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