FX.co ★ Weekly review of EUR/USD for November 01 - 05, 2022

The EUR/USD pair has faced strong resistances at the levels of 1.0009 because support had become resistance. So, the strong resistance has been already formed at the level of 1.0009 and the pair is likely to try to approach it in order to test it again. The bullish trend is currently very strong on the EUR/USD pair. As long as the price remains above the support levels of 0.9946, you could try to benefit from the growth. The hourly chart is currently still bearish.

At the same time, some stabilization tendencies are visible between 1 USD and 0.9854. However, if the pair fails to pass through the level of 1.0009, the market will indicate a bearish opportunity below the new strong resistance level of 1.0009 (the level of 1.0009 coincides with a ratio of 78% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). The market is indicating a bearish opportunity below 1.0009, for that it will be good to sell at 1.0009 with the first target of 0.9946. It will also call for a downtrend in order to continue towards 0.9900.

The daily strong support is seen at 0.9854. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.0094. As a rule, the market is highly volatile if the previous day has huge volatility. But if the last week range was very large, then next week range will be probably moved between the weekly pivot point and resistance 1 or support 1. Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.

The basic trend of EUR/USD pair is neutral, and the short term is tentatively bearish. With such a pattern, it is difficult to favour buying or selling. The first support is located at 0.9706. The first resistance is located at the level of 0.9798. However, the probabilities of moving towards the first support before the first resistance are slightly higher. Without a basic trend, it is important to monitor the price response at these levels. A bearish break in the support or a bullish break in the resistance could provide a signal that would set the new direction of the basic trend.

On the other hand, if the price is blocked by support or resistance, it could be attractive to trade against the trend on the last short-term movement recorded by EUR/USD pair. Technical indicators are bearish in the very shrot term and could soon allow change to a bearish sentiment. Bearish range between the levels of 0.9600 and 0.9854. The EUR/USD pair faced resistance at the level of 0.9854, while minor resistance is seen at 0.9798.

Support is found at the levels of 0.9706, 0.9633 and 0.9600. Also, it should be noted that a daily pivot point has already set at the level of 1.1836. Equally important, the EUR/USD pair is still moving around the key level at 0.9854, which represents a daily pivot in the H1 time frame at the moment. The EUR/USD pair continues to move downwards from the areas of 0.9900 and 0.9854. Yesterday, the pair dropped from the level of 0.9900 which coincides with a ratio of 50% Fibonacci on the H1 chart to 0.9753. Today, resistance is seen at the levels of 0.9854 and 0.9900.

So, we expect the price to set below the strong resistance at the levels of 0.9900 and 0.9854; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. Thus, it will be good to sell below the levels of 0.9900 or/and 0.9854. Amid the previous events, the price is still moving between the levels of 0.9854 and 0.9600 in coming hours.

Always, we use the time frame of H1 to determine the lower and the higher price of yesterday, because it is more precise. Moreover, we use the hourly time frame with a view to determine the lower and the higher price of last week. In overall, we still prefer the bearish scenario as long as the price is below the level of 0.9854. Furthermore, if the EUR/USD pair is able to break out the bottom at 0.9706, the market will decline further to 0.9633 (daily support 2). The price will fall into a bearish trend in order to go further towards the strong support at 0.9600 to test it again. The level of 0.9600 will form a new double bottom.

Conclusion:

The EUR/USD pair increased within a downtrend channel from the prices of 1.0009 and 0.9804 since a week. The bulls must break through 1.0009 in order to resume the uptrend. The trend is still bearish as long as the price of 1.0009 is not broken. Thereupon, it would be wise to sell below the price of at 1.0009 with the primary target at 0.9954. Then, the EUR/USD pair will continue towards the second target at 0.9900. We should see the pair will fall towards the next target of 0.9854. The pair will move downwards continuing the development of the bearish trend to the level 0.9804 in coming days.