Technical analysis for EUR/USD on October 18, 2021

Last week's upward movement resulted in testing the resistance zone of the WCZ 1/2 1.1620-1.1612. There was no consolidation above the zone, which means that the probability of resuming the bearish impulse increases to 70%.


The main trend is downward as long as the pair is trading below the Weekly Control Zone of 1/2 1.1620-1.1612. The bearish impulse remains a priority, and the downward target is the October low. This pattern will give an opportunity to sell and hold a short position this week. It should be noted that sales will open after the test of WCZ 1/2 be converted to breakeven after updating the monthly low.


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The "absorption" pattern of the daily level has been developed. Therefore, nothing prevents the pair from falling to a monthly low. It is better to refrain from searching for patterns to buy an instrument today, since there is a low probability to continue growth. It is possible to look for sales when testing the opening levels of Thursday and Friday, which coincide.


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