The EURUSD pair started its bullish rally after finding decent support at 1.08808, low of 1st October 2019. The EURO bulls struggled hard to clear the major resistance at 1.10609 which is also the high of 11th October. However, the daily closing of the EURUSD index above that level, eventually refueled the bulls and pushed EURUSD pair towards the high of 21st October at 1.11714. After a strong rejection, followed by positive performance in the U.S economy, the EURUSD bulls retreated. This caused a sharp drop in price towards the immediate support at 1.10761. However, the EURUSD index again gained strength and tested the resistance 1.11714.
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The gain was short-lived since the NFP data showed U.S added 128k new jobs which eventually push the U.S dollar index higher. Currently the price testing major support zone at 1.10599. A daily closing below this level might confirm the formation of a double top in the EURUSD 4 hour chart. The bearish break might push the price significantly lower towards the major support at 1.09982. From this level, we might see another bullish recovery attempt from the EURO bulls. Failing to regain control of the market, the EURUSD index might suffer further loss. Considering the overall parameters, EURUSD traders are advised to keep a close eye on the current support level at 1.10599.Download our latest quarterly market outlook for our longer-term trade ideas.
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