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EUR/USD Piercing Line Pattern Could Make a Counter Trend Move

October 03, 2018 20:20

EURUSD Daily Chart - Technical Analysis

Source: EUR/USD Admiral Markets MT5 with MT5SE Add-on - Accessed: 03.10.2018 02:15 AM

EURUSD Daily Chart - Technical Analysis

Source: EUR/USD Admiral Markets MT5 with MT5SE Add-on - Accessed: 03.10.2018 02:15 AM

The EUR/USD currency pair has dropped from the weekly R1 pivot point resistance, and at this point we can see a consolidation. We can also see an emerging piercing line pattern straight from the main Pivot Point. Although tomorrow is a German bank holiday, traders need to pay attention to the ADP (Automatic Data Processing) data release. The ADP measures the estimated change in the number of employed people during the previous month, excluding the farming industry and government. The news should move the EURUSD currency pair. Don't forget to follow our Forex calendar for all regular updates on the news, economic announcements, forecasts and much more.

Technically, the EUR/USD currency pair has formed a piercing line pattern, so we might see a bounce from the 1.1530-50 zone. If this happens, the targets are 1.1590 and potentially 1.1650, where we can see a big confluence of the Pivot Point, the R3 daily resistance and the EMA. ADP can be volatile sometimes, so pay attention to the price action just after the release. Additionally, the bullish counter trend move is negated if the price drops below the 1.1500 support.

Pivot Lines - Weekly Support and Resistance

POC - POC - Point Of Confluence (The zone where we expect the price to react - aka the entry zone)

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.