FX.co ★ Technical analysis on EUR/USD for September 18, 2023

Overview

The trend of EUR/USD pair movement was controversial as it took place in the downtrend channel. Due to the previous events, the price is still set between the levels of 1.0850 and 1.0773, so it is recommended to be careful while making deals in these levels because the prices of 1.0850 and 1.0773 are representing the resistance and support respectively. Therefore, it is necessary to wait till the downtrend channel is passed through. Then the market will probably show the signs of a bearish market. In other words, sell deals are recommended below the price of 1.0850 with the first target at the level of 1.08000. From this point, the pair is likely to begin an descending movement to the price of 1.0770 with a view to test the daily support at 1.0770.

Forecast

If the pair fails to pass through the level of 1.0850, the market will indicate a bearish opportunity below the strong resistance level of 1.0850. In this regard, sell deals are recommended lower than the 1.0850 level with the first target at 1.0800. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.0770. However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.0910 (notice that the major resistance today has set at 1.0850).