EURUSD Risks Deeper Decline at 1.1800 Level on Surge in Europe COVID-19 Cases

EURUSD Risks Deeper Decline at 1.1800 Level on Surge in Europe COVID-19 Cases

EURUSD Price Analysis – October 26

Growing fears of a surge in Europe Covid-19 cases may slowdown economic recovery as new infections trigger stricter measures and prompt investors into safety. EURUSD risks a deeper decline at the 1.1800 level as buyers repeatedly failed to make a sustained break above the daily cloud top around the 1.1850 level.

Key Levels
Resistance Levels: 1.2150, 1.2011, 1.1917
Support Levels: 1.1807, 1.1612, 1.1422
EURUSD Long-term Trend: Ranging
EURUSD is under pressure, trading near the 1.1810 level, and is in danger of further falling. The EURUSD rally appears to have hit a decent barrier at recent highs around 1.1880. A break of this area is expected to push the pair higher towards the 1.1917 area as the bullish trend is expected to resume at the key level.

In a broader context, the rise from 1.0635 is seen as the third phase of the pattern from 1.0339 (low). A further rally towards the cluster resistance at 1.2011 can be seen. This will remain a preferable case as long as the resistance at 1.1422 is held and turned into support.
EURUSD Short-term Trend: Ranging
EURUSD intraday trend stays neutral as consolidation from 1.1880 regions continues. Nevertheless, further growth stays in favor while maintaining the support level of 1.1685. The break into 1.1880 regions will be a test at the 1.2011 high. The 4 hours chart shows that the pair is developing below the moderately bearish 5 and 13 moving averages.

A move below 1.1800 is needed to mark an immediate (minor) high for a pullback to the bottom of the short-term channel seen at 1.1725. On the other hand, a breakout of 1.1685 is likely to extend the corrective pattern from 1.2011 by one more phase. Intraday bias will return to the downside towards 1.1612 and below.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.