Technical analysis 25.10.18

EURUSD

The pair remains in the short-term downtrend in expectation of the ECB’s monetary policy decision. If the bank, and its president Mario Draghi, are optimistic in evaluating the prospects of European economy, the pair will receive support. However, if there are any mentions of risks concerning trade wars of Italy’s debt problems, it may result in a negative attitude towards Euro among investors.

The price is below the middle Bollinger band, above SMA 5, but below SMA 14. RSI is above the oversold territory and is growing. Stoch are also growing.

Trading recommendations:

Sell the pair at its growth from 1.1450, it after it goes below 1.1390 with a possible local target of 1.1300.