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26.10.2020 06:22 PM
Two scenarios for EURUSD

EURUSD is trading around 1.1850-1.18 area. Depending on what we see the rest of the week can be decisive for the next few weeks. EURUSD bulls need to defend 1.18-1.1780 and stay above it, while on the other hand bears need to push price lower and break below this level.

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A rejection at current levels and a push below 1.18 will increase the chances of an at least equal decline in EURUSD similar to the 1.1966 -1.1612 move lower. Such a scenario could find EURUSD in a couple of weeks or sooner near 1.15-1.1550.

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On the other hand if price respects support and continues making higher highs and higher lows, we could see EURUSD reach 1.21. That is why it is important to see how prices move this week as I believe will give the clues for the next couple of weeks trend direction.
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