ZuluTrade Blog

Market View

A potential setup for EURUSD

Wednesday, October 31, 2018 11:12 AM GMT

The annual EU inflation rate was confirmed at 2.2%. It is the highest inflation rate since December 2012. Moreover, the monthly EU unemployment rate remained unchanged at 8.1%. On the other side, today’s agenda includes major news, such as US ADP Employment Change (Previous: 230K, Expected: 189K), US Chicago Purchasing Managers’ Index (Previous: 60.4, Expected: 60) and US EIA Crude Oil Stocks change (Previous: 6.35M, Expected: 3.67M).

Viewing the technical aspect, EURUSD has been trending downwards for the last month. Currently, the pair is approaching the yearly low (1.13), while the RSI is flirting with the oversold zone. Both indicate a potential reversal towards the trendline (T1).


Heading to H4 timeframe, the Stochastics acts supportively to our setup as it is breaking out the oversold zone to the upside.


On the other hand, if price violates the support (S1), then market may offer another bearish opportunity.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.


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