Analysis for October 19th, 2016
EUR USD, “Euro vs US Dollar”
After rebounding from the group of local fibo-levels, the EUR/USD pair started a local ascending correction. It’s highly likely in the nearest future the market may test the retracement of 23.6%. If the price rebounds from this level, it may resume falling.
As we can see at the H1 chart, the correctional retracement of 23.6% is confirmed by intraday fibo-levels. Possibly, the pair may test this area during the day. If the market rebounds from this level, the first target for bears will be the group of retracements at 1.0850.
EUR GBP, “Euro vs Great Britain Pound”
The EUR/GBP pair reached the correctional retracement of 38.2% and may start a new growth. However, if the price breaks this level and fixes below it, the current descending correction may become deeper.
As we can see at the H1 chart, the pair rebounded not only from the retracement of 38.2%, but from several intraday fibo-levels as well. Consequently, in the nearest future the market may grow towards the closest group of retracements, which may later provide resistance.
RoboForex Analytical Department