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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.

The material has been provided by InstaForex Company - www.instaforex.com