EUR/USD Price Analysis – October 5
EUR/USD is currently trading below the 9-day and 21-day moving averages; a further increase in the bears’ pressure may return the price to the previous low of $1.156.
EUR/USD Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $1.175, $1.180, $1.185
Support Levels: $1.145, $1.140, $1.135
EUR/USD is bearish on the long-term outlook. The EUR has been weak in terms of currency strength for some days; this is what gives the EUR/USD opportunity to remain under the bear for more than two months. Looking at the daily chart, the bulls’ momentum continues to get weak as the bears are gradually taking over the market.
EUR/USD Price Analysis: EUR/USD May Continue to Follow Bearish Trend
EUR/USD is trading below the 9-day and 21-day moving averages as the price is moving towards the lower boundary of the channel, targeting the $1.160 support. Therefore, should the bears push down the price below this price level; the currency pair likely reaches the support levels of $1.145, $1.140 and $1.135 respectively. However, should in case the support level of $1.160 level holds the currency pair may reverse and face the resistance level at $1.175, $1.180, and $1.185.
Meanwhile, as the red-line of the 9-day moving average remains below the green-line of the 21-day moving average; the market price may continue to follow the bearish trend. However, this is also confirmed by the technical indicator Relative Strength Index (14) as the signal line is seen moving below 35-level which indicates that additional sell signals may play out.
EUR/USD Medium-term Trend: Bearish (4H Chart)
EUR/USD is also bearish in the medium-term outlook. The currency pair is rejected at the price level of $1.161 and descends to break down the $1.160 support level. At the moment, EUR/USD is following a sideways movement as the price is likely to decrease towards the support level of $1.155 and below.
However, the 9-day MA is trying to cross below the 21-day MA while EUR/USD is trading within the two moving averages. Therefore, if the currency pair trades below the 21-day MA, the market may continue the downward movement. Moreover, the technical indicator Relative Strength Index (14) is seen moving around 44-level with the signal line pointing up to indicate a buy signal. In case the support level of $1.160 level holds, the currency pair may reverse and confront the resistance level at $1.165 and above.