EURUSD extending the losses in today’s Asian session low made at 1.1800. Before retracing to 1.1800 it was spotted with a double top at 1.1880 it’s 50.0% fib (1.2090-1.1665 fall) above this 1.1910 earlier swing high exists.
Weekly forecast: FX traders are waiting for the Monetary policy speech.
According to Barclays, “A number of ECB speeches this week by Draghi, Praet, Coure, and Constancio will be watched ahead of the October ECB meeting but are unlikely to deliver new information on monetary policy, in our view”.
Technically speaking, it has a potential resistance zone seems between 1.1880-1.1930 it’s 61.8% fib reaction. We wouldn’t fade this on the assumption that we are forming a right-hand shoulder on the daily chart. If propels above the left shoulder/1.1930, opens to 1.20. As we forecast in our Friday’s article (Oct 14) it has failed at the higher end of the falling channel (below chart). Further retracement could be expected below 1.1770. In this case, 1.1740 and 1.1710/1.1700 is an initial target.
On the daily chart, the neckline is found at 1.1660 below this 100MAs finds between 1.1630-1.1620. A weekly close below 1.1600 we believe near-term retracement could extend to 1.1500/1.1465 and 1.1420.
The daily RSI sloping down and the weekly oscillator remain bearish.
View: Waiting for a clear picture.
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