During yesterday's trading, the main Forex currency pair showed moderate strengthening, but this did not lead to any changes in the technical picture. The weakening of the US dollar was caused by positive investor sentiment on the global financial markets. There was a slight risk appetite, which certainly reduced the US dollar's attractiveness as a defensive asset. Thus, economists from the International Monetary Fund (IMF) gave a positive assessment of the European economic recovery in their report. According to IMF experts, the timely anti-crisis measures taken to combat the effects of the COVID-19 pandemic, as well as the appropriate expansionary monetary policy of the European Central Bank, have contributed to this.

Although, as we remember, Europe initially failed in preventing the spread and the negative effects of the coronavirus. IMF economists expect eurozone GDP to fall by 6.3% this year, but to grow by 5% in 2022. As for inflationary pressures in the euro area, the IMF representatives express confidence that there will be no long-term period of high inflation as energy-related resource prices will fall next year. Overall, according to IMF experts, the global economy is recovering more quickly than might have been expected 10-12 months ago. The Eurozone consumer confidence index is due to be published today. As for the US data, you should pay attention to the initial jobless claims report as well as the release of secondary market housing sales.

Daily

As mentioned earlier, the EUR/USD pair rose during trading on October 20, but this did not change the technical situation in any way. The euro bulls managed to close yesterday's trading above the resistance level of 1.1640 but failed to break the key resistance of the sellers at 1.1670. Moreover, the quoted price hasn't even reached this important and strong level, above which the blue Kijun line of the Ichimoku indicator is also located. Both the Kijun and the 50-straight moving average at 1.1710 are able to create a very strong resistance for the pair to advance northwards. It is likely that until these obstacles are overcome, no further currency appreciation can be expected. At the time of writing, EUR/USD had risen to 1.1668, but then it retreated and is now trading slightly lower. The bears need to go under 1.1600 and then try again to break the strong support at 1.1525. These are the objectives of the opposing sides on the daily chart.

H1

Turning to the current trading ideas, a pullback to the resistance level of 1.1640, passed the day before, is a good chance to buy. Below that, you can look out for long positions near the significant and important level of 1.1600. If the pair reverses upwards, under 1.1670 there will be difficulties again and reversal patterns of the candlestick analysis will appear, try to sell. In conclusion, it should be noted that with any positioning, there is no need to set large targets. In the current situation, a profit of about 30 points would be sufficient.