EURUSD 1.19? – 05 October 2020

Since our last forex article, where EURUSD’s tendency was in the upward direction, since then we’ve observed a big correction that went near 1.16, in a major way, due to some economic events. This correction ended up losing steam and is back in an ascending direction. Although, it is important to know that this direction might be affected by speeches that will happen this week by important central bank members from the USA and Europe.

So, in order to best task advantage of the opportunities, we leave our opinion:

Source: Tradingview/IDC

Before anything else, please take note that the three images above represent EURUSD in three different time horizons. The purpose of those three time horizons is to better gauge the price movement.

We can observe that after the correction, the pair rises again, and if this tendency remains, we can see in X1 a short term target and in X2 a potential entry point.

Again we like to emphasize the importance of the speeches being made this Tuesday and Wednesday. In case markets react negatively and fail to rebound on X2 we might see a bigger correction from the pair.

Note

Be aware that a good capital management strategy is vital to success.

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1 Comment

  1. Donald Trump announces a last-minute measure, that might invalidate this idea. This measure is related to the negotiation of new stimulus between the democrats and republicans, canceling any negotiation until he wins the election, effectively using the stimulus as a hostage.

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