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EUR/USD: Correction Lower Continues - Tech Analysis | 31st October 2013

The EUR/USD pair continues its bearish correction. It has now reached support from the R1 monthly pivot at 1.3689 and it could bounce temporarily, however, the pivot will change tomorrow as its the end of the month. There may be a bounce to 1.3750 were MA's are clustered, however, there are no signs of such a bounce today, and candles remain bearish so it is more probable we will simply get more downside, with a decisive move below 1.3689 signalling a fall to trend-line support at 1.3640. Alternatively a sideways consolidation at the current pivot support is also very possible. The bearishness of the correction signals a possible change of the short-term trend, however, looked at on a longer-term chart it appears as merely a correction of the prevailing mid-term up-trend. The correction, therefore, would be expected to end at some point and the up-trend resume, going back up to the highs at 1.3831.

Analysis prepared by: Joaquin Monfort

Liga Forex Analyst: [Original Source here]