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05.11.201912:24 Forex Analysis & Reviews: November 5, 2019 : EUR/USD technical outlook predicts further bearish decline below 1.1090.

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 05.11.2019 analysis

On September 13, the EUR/USD started trending-down within the previous short-term bearish channel until an Inverted Head & Shoulders Pattern was demonstrated around 1.0880 on October 1.

Shortly After, a bullish breakout above 1.0940 confirmed the mentioned reversal Pattern which opened the way for further bullish advancement towards (1.1000 -1.1020) maintaining bullish movement above the depicted bullish trend.

On October 7, a sideway consolidation range was demonstrated around the price zone of (1.1000 -1.1020) before another bullish swing could be initiated towards 1.1175 where the previous bearish movement was recently originated.

Last week, the short-term technical outlook has temporarily turned into bearish after breakdown below 1.1090 was achieved (the depicted uptrend line and 50% Fibonacci Retracement Level).

However, recent bullish movement has been demonstrated above (1.1090 - 1.1100) advancing towards 1.1175. Thus, hindering further bearish decline.

On the other hand, the price zone around 1.1175 - 1.1190 stood as a significant SUPPLY-Zone that demonstrated bearish rejection for two consecutive times in a short-period.

Hence, a short-term Double-Top pattern is currently in progress with neckline located around 1.1130. Initial Bearish Projection target would be located around 1.1060.

Another long-term Double-Top pattern is being demonstrated with neckline located around 1.1075-1.1090 which needs to be broken-down in order to be activated.

Quick bearish decline should be expected towards 1.1025 and 1.0995 provided that early bearish breakout below 1.1090-1.1070 is re-established again.

Trade recommendations :

Conservative traders could have a valid SELL entry anywhere around the backside of the broken uptrend line (1.1175).

Initial T/P levels to be projected towards 1.1110, 1.1085 and 1.1060. while S/L should be lowered to 1.1170 to offset the associated risk.

Mohamed Samy
Analytical expert of InstaForex
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