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The previous resistance at 1.1110 is acting as support now

EUR/USD Stalls at Previous Resistance

Posted Wednesday, October 23, 2019 by
Skerdian Meta • 1 min read

EUR/USD has turned quite bullish this month. It made some new lows three weeks ago, falling to 1.0870s, but then reversed higher as the USD turned bearish. The contraction in US ISM manufacturing started the reverse, but then the Brexit deal and the partial trade deal Between US and China turned the sentiment quite positive in financial markets and the climb in EUR/USD picked up further pace.

Although, the climb ended at the end of last week. This week we have seen EUR/USD retrace lower since the week began, as markets wait to see what happens with Boris Johnson’s Brexit deal in the British parliament. The parliament voted pro BoJo’s deal yesterday, but then voted against the timetable in the meaningful vote.

As a result,the sentiment has been hurt a little and EUR/USD has retraced lower. The retrace has been slow, which shows that traders are being cautious, since uncertainty is high. But, the decline stalled at 1.1110 today. This level has been acting as support before, but then turned int resistance in September.

Now, it seems to have turned into support again. The price bounced this morning off that level, but it hasn’t gotten too far. We have a buy signal in this pair with the stop at 1.1103, but I think that I will pull the stop lower below 1.11, just in case.

 

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