EURUSD → Retest of resistance leads to new sales

2 oct. 2023

EURUSD is forming a retest of resistance of the descending price channel. On the senior timeframe (D1) the preconditions for further sell-offs are forming

The market is in the bear market phase. The resistance retest forms a consolidation of the price below the level, which forms a bearish potential before the further fall. At the moment, the fundamental background of the DXY is quite strong and thus, the Euro will weaken against it, which is what we see. On the monthly chart the price is testing an important support level. On the background of a strong fall, a false breakdown may be formed, which may be followed by a correction. The market cannot fall all the time and at some time EURUSD may go into the phase of consolidation (correction or flat formation). Moving averages act as resistance.

Support levels: 1.05000, 1.0557
Resistance levels: 1.0610, 1.0635
I expect the continuation of the fall to the mentioned support area with the subsequent breakout and further fall to 1.0350

Regards R. Linda!