FX.co ★ Technical analysis of EUR/USD for October 2023

Trend analysis:

Further decline may be seen in EUR/USD in October, starting from the level of 1.0574 (closing of the September monthly candle) to the lower fractal at 1.0488 (red dashed line). It will be followed by a rise to the 23.6% retracement level of 1.0673 (red dashed line) and towards the 38.2% retracement level of 1.0785 (red dashed line). A downward movement may occur after the test of this level.

Fig. 1 (monthly chart)

Comprehensive analysis:

Indicator analysis - downtrend

Fibonacci levels - downtrend

Volumes - downtrend

Candlestick analysis - downtrend

Trend analysis - downtrend

Bollinger bands - downtrend

Conclusion: All signals point to a downward movement in EUR/USD.

Overall conclusion: The pair will have a bearish trend, with no first upper shadow on the monthly white candle (first week of the month - black) and a second upper shadow (last week - black).

Therefore, this month, quotes will drop from 1.0574 (closing of the September monthly candle) to the lower fractal at 1.0488 (red dashed line), followed by a rise to the 23.6% retracement level of 1.0673 (red dashed line) and towards the 38.2% retracement level of 1.0785 (red dashed line). A downward movement may occur after the test of this level.

Alternatively, euro could slip from 1.0574 (closing of the September monthly candle) to the lower fractal at 1.0488 (red dashed line), and then fall further to the historical support level of 1.0373 (blue dashed line). A rebound to the 23.6% retracement level of 1.0673 (red dashed line) may occur after testing this level.