Since October 25, EUR/USD has been trading within a range of about 40 pips. A breakdown and consolidation above or below either border could define the trend of the euro for the next few days.
EUR / USD is vulnerable to bearish pressure below the 200 EMA located at 1.1650. Around this zone, any unsuccessful breakout attempts will be an opportunity to continue selling the euro. In the meantime, we expect the euro to break out of the range to be able to open either buy or sell positions.
A sharp break above the 200 EMA (1.1649) and above the 3/8 Murray (1.1657) could be the start of a bullish move and the euro could rally to the zone of 1.1718. There is 4/8 of a murray and this level represents very strong resistance.
On the other hand, if the euro continues a consolidation below the 21 SMA and below the 2/8 murray, we should expect a consolidation around 1.1580. Then, it will be a sign that the bearish force is prevailing and we can sell the pair with targets up to 1.1535. This level is the support of 1/8 of murray and the swing low of October 12.
Our forecast is bullish according to the eagle indicator that is showing a positive signal. For this, we should wait for a break of the top of the range and a consolidation above the 21-moving average. Then, we will be able to buy above 1.16 15 with targets up to 1.1650 where the EMA of 200 is located.
Support and Resistance Levels for October 28 - 29, 2021
Resistance (3) 1.1661
Resistance (2) 1.1643
Resistance (1) 1.1627
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Support (1) 1.1578
Support (2) 1.1560
Support (3) 1.1529
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A trading tip for EUR/USD for October 28 - 29, 2021
Buy if EUR/USD breaks above 1.1615 (zone of range) with take profit at 1.1649 (EMA 200), stop loss below 1.1580.
