Technical analysis of EUR/USD for November 06, 2020

Trading 06 Nov 2020 Donner votre avis

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Overview :

The EUR/USD pair rallied on Friday, reaching as high as 1.1865 in order to continue for a strong bullish market during this week.

The bulls continue to have the upper hand this morning, suggesting that short-term traders could continue to buy the market on short-term dips.

Price is starting to bounce politely off our major support area starting from 1.1765 (61.8% of Fibonacci retracement) which represents the horizontal swing low support and bullish price action. We expect a further bounce up to at least 1.1920 resistance one.

On the one-hour chart, the EUR/USD pair continues moving in a bullish trend from the supprt level of 1.1765, which coincides with the weekly pivot.

Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. RSI (14) is seeing a nice bounce above 30% support and has good upside potential.

The bias remains bullish in the nearest term testing 1.1865 and 1.1920. Immediate resistance is seen around 1.1920 levels.

Moreover, the moving average (100) starts signaling an upnward trend; therefore, the market is indicating a bullish opportunity above the levels of 1.1765 - 1.1800.

The EUR/USD pair has risen further and is starting to see an intermediate reversal. We expect a drop towards the 1.1817 area as we look to buy above 1.1817. And we expect a further bounce up to at least 1.1920 resistance (Fhorizontal swing high resistance).

The EUR/USD pair will continue to rise from the level of 1.1817. The support is found at the level of 1.1817, which represents the 78% Fibonacci retracement level in the H1 time frame.

The price is likely to form a new double bottom. Today, the major support is seen at 1.1765, while immediate resistance is seen at 1.1920.

Accordingly, the EUR/USD pair is showing signs of strength following a breakout of a high at 1.1865. So, buy above the level of 1.1865 with the first target at 1.1920 so as to test the daily resistance 1 and move further to 1.1975.

Also, the level of 1.1975 is a good place to take profit because it will form a strong bullish wave this week. Amid the previous events, the pair is still in an uptrend; for that we expect the EUR/USD pair to climb from 1.1920 to 1.1975 today.

the same time, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.1765, a further decline to 1.1660 can occur, which would indicate a bearish market. The market is still in an uptrend. We still prefer the bullish scenario.

The material has been provided by InstaForex Company - www.instaforex.com

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