FX.co ★ Technical Analysis of EUR/USD for November 01, 2021

After breaking the support at 1.1672. The EUR/USD pair has set strong resistances at the levels of 1.1672 because the support has become a resistance on the 4h chart.

So, the price has already formed the strong resistance at the level of 1.1672 and the pair probably will try to approach from it in order to test it again.

However, if the pair fails to pass through the level of 1.1672, the market will indicate a bearish opportunity below the new strong resistance level of 1.1672 (the level of 1.1672 coincides with the ratio of 38.2% Fibonacci).

Moreover, the RSI is becoming to signal a downward trend, as the trend is still showing strong above the moving average (100) and (50).

Thus, the market is indicating a bearish opportunity below the 1.1672 level so it will be a good sign to sell at 1.1672 with the first target of 1.1525.

It will also call for a downtrend in order to continue towards 1.1459. The daily strong support is seen at 1.1396. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.1762.

It is also worth noting that the price at 0.8521 will possibly form a strong support. Accordingly, saturation around 1.1396 to rebound the pair is likely to occur. Furthermore, it is possible that the market is going to start showing the signs of bullish market. Hence, it will be a good sign to buy above 1.1396 to retest the levels of 1.1650-1.1675.