EUR/USD Is At The Resistance Line
Lingrid Khamulyak | Oct 06, 2020 08:04AM ET
At today's trading, the EUR/USD price came close to the strong line and the resistance level in the 1.177 zone. We remember that throughout the summer, the pair broke through this zone quite often.
But now, after a serious fall in the second half of last month and the aggravation of the political situation in the countries of currencies, more caution should be expected on the part of both "bulls" and "bears".
That's why, I predict that the price will rise only to the resistance line, touch it and start descending to the support level of 1.161. For everyone who is going to open a sell deal in this case, I advise you not to forget to select SL carefully.
Despite the political instability, GBP/USD shows encouraging results. Now it is in an upward channel and came to its middle, having broken through the resistance zone of 1.298. Besides, it is approaching its past maximum, which it showed in mid-September.
By all means, the resistance is very strong, but it should be taken into consideration that now the pair is in the correction process after a flash crash in early September. Therefore it is more probable that it will have enough strength to continue its growth and in the future come to the upper border of the channel, the resistance line 1.321.
In the Asian session, EUR/JPY is testing the 124.6 resistance level. After the price reached its annual low in May, we watched the pair do its best to restore its positions. Through a series of corrections and pullbacks in early September, it even managed to set a new maximum at position 127.1, but there the pair was "recaptured" by a strong resistance line.
And a week ago, the price came to the support line 122.4. Observing the chart, it is possible to make the conclusion that the resistance level 124.6 has broken off even a stronger and more stable price growth more than once. Therefore, now EUR/JPY is expected not to be able to break through this level and will return to the support line.
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EUR/NZD are arousing the interest of the market again. Throughout the past month, EUR/NZD has been rather unstable, moving in a small growing channel from its lower to upper border and back.
Over the last 24 hours, the price has overcome half of the channel and managed to break through the support zone. Moreover, remembering its zigzag move last month, now I suppose EUR/NZD will rally towards the upper border of the channel, the resistance line at 1.794.
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