FX.co ★ Technical analysis of EUR/USD for October 12, 2020

The EUR/USD pair was trading higher and closed the day in positive area around the 1.1810 level.

The EUR/USD pair will probably continue to rise from the level of 1.1810 in the long term.

It should be noted that the support is established at the level of 1.1757 which represents the 61.8% Fibonacci retracement level on the H1 chart.

The price (1.1757) is likely to form a double bottom in the same time frame.

Accordingly, the EUR/USD pair is showing signs of strength following a breakout of the highest level of 1.1810.

We expect to see a strong reaction off this level to push price up towards 1.1828 before 1.1757 support.

RSI (14) sees a bullish way out of our ascending support-turned-resistance line signalling that we'll likely be seeing some bearish momentum between the levels of 1.1828 - 1.1757. This suggests the pair will possibly go up in coming hours.

A daily closure above .1828 allows the pair to make a quick bullish movement towards the next resistance level around 1.1868.

However, traders should watch for any signs of bearish rejection that occur around 1.1828 - 1.1755.

The pivot point stands at 1.1755. The pair is trading above its pivot point. It is likely to trade in a higher range as long as it remains above the pivot point.

Long positions are recommended with the first target at 1.1868. A break of that target will move the pair further downwards to 1.1909.

Today, the price is in a bearish channel now as long as the trend is still set above the spot of 1.1755. Amid the previous events, the pair is still in an uptrend.

From this point, the EUR/USD pair is continuing in a bullish trend from the new support of 1.1755.

Forecast :

Buy above the level of 1.1757 with the first target at 1.1868 in order to test the daily resistance 1 and further to 1.1909. Also, it might be noted that the level of 1.1909 is a good place to take profit because it will form a new double top.

On the other hand, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.1757, a further decline to 1.1642 can occur which would indicate a bearish market.