FX.co ★ Technical analysis of EUR/USD for October 20, 2016

EUR/USD continues to produce lower highs and lower lows. The pair rejected the downward trendline and bounced off the 50 Moving Average.

The trend down is likely to continue and today EUR/USD might fall substantially. Fibonacci applied to the corrective wave up where pair rejected the 200 Moving Average shows that the nearest downside target is 261.8% Fibs (1.0940) that hasn't been tested yet. However, this level is likely to be broken and a range will go further down to test 361.8% Fibs (1.0840).

Consider selling EUR/USD at the current rate (1.0977) targeting 361.8% Fibs (1.0840). The suggested stop loss is 1.1020.

Support: 1.0940, 1.0840

Resistance: 1.1040