A technical reversal would be confirmed if daily price action prints a bullish rejection candle off this 1.1120 – 1.1150 base. A breakout above the descending channel's upper rail would likely trigger a sharp short-squeeze, with the initial recovery target located at the prior horizontal support-turned-resistance zone near 1.1380 – 1.1400, confluent with the descending 20-day SMA. Conversely, should the pair fail to hold above 1.1120 on a daily closing basis, the reversal setup would be invalidated, opening the door for an extended slide toward the 1.1000 barrier.
Note: This section contains information in English only.
The steep descent from the late August peak near 1.1700 has driven EUR/USD down toward the lower boundary of a well-defined descending channel, setting the stage for a potential counter-trend reversal or relief rally. The current test of the 1.1165 low places price directly above a major multi-month support shelf situated around 1.1120 – 1.1150. Because price action is now severely stretched below the downward-sloping 20-day SMA, downward momentum is increasingly vulnerable to seller exhaustion and mean-reversion forces, especially as the lower channel trendline provides dynamic horizontal and diagonal confluence.
A technical reversal would be confirmed if daily price action prints a bullish rejection candle off this 1.1120 – 1.1150 base. A breakout above the descending channel's upper rail would likely trigger a sharp short-squeeze, with the initial recovery target located at the prior horizontal support-turned-resistance zone near 1.1380 – 1.1400, confluent with the descending 20-day SMA. Conversely, should the pair fail to hold above 1.1120 on a daily closing basis, the reversal setup would be invalidated, opening the door for an extended slide toward the 1.1000 barrier.
Wed, 07 Oct 2026 14:54:10 GMT
Source: Dukascopy Bank SA
A technical reversal would be confirmed if daily price action prints a bullish rejection candle off this 1.1120 – 1.1150 base. A breakout above the descending channel's upper rail would likely trigger a sharp short-squeeze, with the initial recovery target located at the prior horizontal support-turned-resistance zone near 1.1380 – 1.1400, confluent with the descending 20-day SMA. Conversely, should the pair fail to hold above 1.1120 on a daily closing basis, the reversal setup would be invalidated, opening the door for an extended slide toward the 1.1000 barrier.
Actual Topics
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
nás prosím kontaktujte alebo požiadajte o hovor od nás.
For further information regarding potential cooperation,
please call us or make callback request.
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options
/ Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
please call us or make callback request.
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
nás prosím kontaktujte alebo požiadajte o hovor od nás.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
please call us or make callback request.