Analysis for October 31st, 2016
EUR USD, “Euro vs US Dollar”
The EUR/USD pair is still being corrected. It’s highly likely that on Monday the market may reach a new local high. Later, the price may resume falling to reach the group of downside fibo-levels at 1.0785.
As we can see at the H1 chart, the target of the current correction is the retracement of 78.6%. If the price rebounds from it, the pair may resume its descending movement to reach its downside targets. However, if this level is broken, the correction may continue.
EUR GBP, “Euro vs Great Britain Pound”
After rebounding from the retracement of 38.2%, the EUR/GBP pair started a short-term growth. It looks like in the nearest future the market may test the retracement of 23.6%. If the price rebounds from this level, it will continue consolidating.
As we can see at the H1 chart, the pair got very close to the closest group of fibo-levels. So, now we have two possible scenarios. If the price rebounds from this area, the current flat may continue. However, if this area is broken, the market will continue its ascending movement.
RoboForex Analytical Department