OctaFX | OctaFX Forex Broker
Open trading account

EUR/USD Price Analysis: 1.1100/05 becomes the key upside barrier

  • EUR/USD remains below 21-day SMA, nears 50% Fibonacci retracement.
  • A confluence of 50-day SMA, 38.2% Fibonacci retracement and five-week-old descending trend line offers the key resistance.
  • 61.8% Fibonacci retracement, 1.0990/95 can please sellers during further declines.

EUR/USD recovers the previous day’s losses while trading around 1.1060 during early Tuesday. The pair recently took a U-turn from 21-day SMA but failed to stay longer below 50% Fibonacci retracement of its October-December 2019 upside.

With this, prices are likely to again challenge 21-day SMA level of 1.1085. However, 50-day SMA, 38.2% Fibonacci retracement and a short-term falling resistance line could keep challenging the buyers around 1.1100/05.

In a case where prices manage to provide a daily closing beyond 1.1105, January 16 high near 1.1175 and 1.1200/05 can offer intermediate halts during the run-up to December 2019 monthly top close to 1.1240.

Alternatively, 61.8% Fibonacci retracement near 1.1017, followed multi-week-old horizontal support around 1.0995/90, can limit the pair’s further declines.

EUR/USD daily chart

Trend: Pullback expected


PBOC sets Yuan reference rate at 6.9779

The People's Bank of China (PBOC) has set the Yuan reference rate at 6.9779 versus Monday's fix at 6.9249.
Read more Previous

When is the RBA Interest Rate Decision and how could it affect AUD/USD?

The Reserve Bank of Australia (RBA) is all set to announce the first monetary policy decision of 2020 at 3:30 am GMT on Tuesday.
Read more Next
Start livechat