FxWirePro: EUR/USD reverses recent rally, bias back to downside
Monday, October 31, 2016 2:24 PM UTC
- EUR/USD pair declined in the US session as dollar rebounded as concerns over the outlook for the U.S. election eased on Monday.
- Dollar declined on Friday after the Federal Bureau of Investigation said it would investigate additional emails relating to Hillary Clinton's use of a private server, roiling the presidential campaign.
- The ongoing weakness for this pair is set to continue as resistance level at 1.1035 levels should limit upside and bring decline towards lower levels in the short term.
- To the upside, immediate resistance can be seen at 1.0988 a break above this level would take the pair towards next resistance level at 1.1035.
- To the downside, strong support can be seen at 1.0940 levels, a break below this level will open the door towards next level at 1.0880.
Resistance Level
R1: 1.0988 (50% Retracement level)
R2: 1.1035 (61.8% Retracement level)
R3: 1.1061 (Oct 14th high)
Support Levels
S1: 1.0940 (38.2% Retracement level)
S2: 1.0880 (23.6% Retracement level)
S3: 1.0849 (Oct 25th lows)