FX.co ★ Trading strategy for EUR/USD on October 28th. Informational calm will be replaced this week by a parade of news

EUR/USD – 4H.

As seen on the 4-hour chart, the EUR/USD pair performed consolidation under the correction level of 100.0% (1.1106), thus, the process of falling of the euro currency can be continued this week in the direction of the next Fibo level of 127.2% (1.1024). The pair's quotes also closed under the upward trend channel, which indicates a change of traders' mood to a downward trend. None of the indicators has emerging divergences today. There is nothing to potentially prevent further depreciation of the pair.

Last week was very controversial in terms of information for the EUR/USD pair. Four out of five days were empty, and the pair, having completed a rebound from the level of 1.1164, began to fall, since there was nothing else left. But on Thursday, traders were hit by a whole tub of information, moreover, diverse and quite important. As a result, most of the news and reports were not taken into account by traders, and the quotes continued to fall. Will the fall continue this week? Apart from all the news and reports this week is the Fed meeting scheduled for Wednesday. On Wednesday, the mood of traders may change again, as, according to the expectations of traders, the key rate of the American Central Bank will be reduced again. This may cause some disappointment among traders, as the Fed will ease monetary policy for the third time in a row. Against the background of all Jerome Powell's sayings about the Fed's independence, this may also surprise and distrust his words. Until Wednesday evening, when the results of the Fed meeting will be known and a press conference will begin, only today you can pay attention to the statement of the ECB President Mario Draghi, and on Wednesday – we pay attention to the report on US GDP for the third quarter (preliminary value).

The new performance by Mario Draghi, however, can be just an interesting event, but nothing more. Just last week, a meeting of the European Central Bank was held, and there Mario Draghi has already given all the necessary information to traders, so it is unlikely that in just a few days his rhetoric will change or he will announce something fundamentally new. Thus, most likely, the lull in the forex market will continue even until Wednesday. But on Wednesday morning, the first movements of the market are possible, which will begin to prepare for the evening events. Of course, more chances this week to see the fall of the US dollar, as the Fed is likely to lower the rate again, and the economic reports of the last week of the US cannot be called rosy, and Jerome Powell is likely to express another concern about the slowdown of the economy. But the Euro currency may fall, if, for example, on Thursday it turns out that inflation in the European Union slows down to critical values and tends to 0.0%.

What to expect from the euro/dollar currency pair today?

On October 28, traders can count on the continuation of the fall of the euro currency, as there are no events that can change the mood today. There is little hope for Mario Draghi's performance, but it is unlikely to be interesting. Only the closing of the pair above the Fibo level of 100.0% can be interpreted as a reversal in favor of the EU currency and expect some growth towards the level of 1.1164, but there is little chance of this since the pair has just left the trend channel.

The Fibo grid is based on the extremes of May 23, 2019, and June 25, 2019.

Forecast for EUR/USD and recommendations to traders:

I recommend selling the pair with a target of 1.1024, as the close was made under the level of 1.1106 (100.0% Fibonacci). A stop-loss order above the level of 1.1106.

I recommend buying the pair with targets of 1.1164 and 1.1232 and the stop-loss order below the level of 1.1106 if the closure is performed above the Fibo level of 100.0%.