The EURUSD currency pair is exhibiting a descending channel formation, emphasizing a bearish momentum in recent times. The price action within this channel shows that the pair has repeatedly tested the lower boundary, suggesting robust support levels. Furthermore, as we approach the current date, the price seems to be making a modest recovery, inching towards the midpoint of the channel. The RSI, our chosen technical indicator, has been fluctuating mostly between the 30 and 50 marks, indicating that the pair has been in a generally oversold to neutral territory. Recent upticks in the RSI suggest a possible shift in momentum or a potential relief rally. However, traders should remain cautious and observe if the RSI breaks above the 50 level, which could provide more bullish confirmation.
• There is a resistance level at 1.07410, with subsequent resistances possibly at 1.07666 and 1.08600 based on psychological levels.
• There is a support level at 1.06160. If the price breaches this level, further support might be found at 1.04960 and 1.04444
Note: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.
October 24, 2023