2016-10-26 15:04:17

Review and dynamics
At the beginning of today's European session, the pair EUR/USD has grown by about 40 points above resistance level of 1.0920 (ЕМА144 and the upper line of the descending channel on hourly chart).

However, this growth is likely to be the correction after the significant rise in the USD and take profit in the USD long positions.

It is expected that QE program in Eurozone and the rise in the US interest rate in December will take place and these facts will continue to put pressure on the EUR/USD pair causing its decline.

Since the beginning of the month, the pair EUR/USD has been declining. The price has broken down important support levels of 1.1170(ЕМА200 on the daily chart), 1.1120 (lower limit of the range between the levels of 1.1285 (Fibonacci 23.6% after the decline from the highs of 2014) and 1.1120 (lows of Sep)), 1.1045 (the lower limit of the broader range between the levels of 1.1045 (lows of August) and 1.1350 (highs of Aug)) and 1.0975 (lows of July) and pressure on the pair EUR/USD continues.

On the weekly chart the pair EUR/USD is falling in the descending channel with the lower limit near support level of 1.0600 (lows of November 2015) trying to reach the new 7-month lows.

Technical analysis
On the daily and weekly charts the indicators OsMA and Stochastic give sell signals; on the monthly chart the indicators also give signals for short positions. When the indicators OsMA and Stochastic give sell signals on the hourly and 4-hour charts, short positions can be advisable with the targets of 1.0865, 1.0825, 1.0710 and 1.0600.

EUR/USD continues to remain under pressure from the fundamental data. Difference in the monetary policies of the US Fed and the ECB will continue to put pressure on EUR/USD in the medium term.

After the rise in the pair above the level of 1.1045, long positions can be possible in the pair with target of 1.1170. In the medium-term long positions can be opened only after breakout of the level of 1.1170.

Support levels: 1.0865, 1.0825, 1.0710 and 1.0600.
Resistance levels: 1.0920, 1.0940, 1.0975, 1.1045, 1.1120, 1.1170, 1.1205 and 1.1285.

Trading tips
Sell on the market. Stop-Loss: 1.0950. Targets: 1.0865, 1.0825, 1.0710 and 1.0600.
Buy Stop: 1.0965. Stop-Loss: 1.0910. Targets: 1.0975, 1.1045, 1.1120 and 1.1170.

The rise will not exceed the level of 1.0940
The rise will not exceed the level of 1.0940

In the descending channel
In the descending channel