FX.co ★ EURUSD, bearish below the 200 EMA, and in front of the ECB announcement. Analysis for October 29, 2020

In the next few hours the European Central Bank will talk about its monetary policy. There is a fairly broad consensus that the ECB will stand pat on all settings of monetary policy. However, others are of the opinion that the ECB will announce an increase in flexibilization in December. Scheduled for 7:45 GTM -5. This data could add some volatility to the euro/dollar pair.

At a technical level, according to the chart at this time we see that the euro/dollar pair is trading below the 200-day average. There is strong downward pressure on a 4-hour chart. However, the 0/8 of the Murray levels are supporting a strong fall, we expect there to be a pullback to the 1.1790 zone, and then fall strongly to the levels 1.1742 and 1.1685, if the price consolidates above 1.1790. We can buy with targets in the 1.1840 zone. The Eagle indicator is showing a bearish signal, the indicator is below the 90 zone, a drop could occur in the medium term.

Our key levels are:

Buy above 1.1790 with take profit in 1.1840, resistance zones.

Sell below the 200 moving average, below 1.1790 - 1.1770, with targets in 1.1742 and 1.1685.