EUR/USD Bounces Off the Support at 1.13 Again but Heads Back Down

EUR/USD was headed toward 1.13 once again, but jumped up on Brexit-deal rumors. Although, it is sliding back there again.

Skerdian Meta•Wednesday, October 31, 2018•1 min read

EUR/USD has been on a bearish trend for weeks and today the downtrend gained additional pace during the European session after some pretty weak economic numbers form the Eurozone. As a result, this forex pair continued to decline faster and two hours ago it got pretty close to 1.13.

The area around 1.13 has been providing resistance back in 2014 and 2015, but it eventually got broken as EUR/USD reversed the bearish trend and entered a strong bullish trend last year. This year, the bearish trend resumed again and EUR/USD lost more than 12 cents from top to bottom, but the 1.13 level is making things difficult for the sellers.

This level provided support exactly to the pip this August as EUR/USD reversed right at 1.1300. This pair climbed above 1.18 by September but resumed the bearish trend once again, so here we are back at 1.13 now.

Today the price fell to 1.1310 and the sellers tried the support area twice as we can see from the H1 chart above. But both candlesticks formed dojis which are reversing signals and eventually EUR/USD jumped 30 pips higher.

The reason for this jump are comments from the Brexit Secretary Dominic Raab who just said that we should accept a deal by November 21. GBP/USD jumped 80 pips higher and it pulled EUR/USD with it. But, EUR/USD has given back all the gains in the last few minutes, so from this price action, it seems that 1.13 will have to go soon.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.