FX.co ★ EUR/USD. Technical Analysis for the Week of October 13–18

Trend Analysis (Fig. 1)This week, from the level of 1.1621 (the closing price of the last weekly candle), the market may continue to move downward, aiming for 1.1488 — a historical support level (light blue dashed line). When testing this level, the price may bounce upward toward 1.1536 — the 38.2% retracement level (blue dashed line).

Figure 1: Weekly Chart

Comprehensive Analysis

• Indicator analysis – downward;
• Fibonacci levels – downward;
• Volumes – downward;
• Candlestick analysis – downward;
• Trend analysis – downward;
• Bollinger Bands – downward;
• Monthly chart – downward.

Conclusion of comprehensive analysis: downward movement.

Overall Summary for the Weekly EUR/USD Candle

Throughout the week, the price is most likely to show a downward trend, with no upper shadow on the weekly black (bearish) candle (Monday — down) and a lower shadow forming by Friday (Friday — up).

Alternative Scenario

From the level of 1.1621 (closing price of the last weekly candle), the pair may continue its downward movement toward 1.1447 — the 50% retracement level (blue dashed line). Upon testing this level, the price may start moving upward, targeting 1.1488 — the historical support level (light blue dashed line).