EUR/USD enters the new week with a constructive backdrop, earning our A+ (3/3) rating as fundamentals, technicals, and positioning align. On the macro side, the ECB looks set to stay steady while the Fed’s tone has softened into late-October, tilting the policy-spread narrative in the euro’s favor. Technically, price has carved out higher-lows around the 1.16 handle, with a topside magnet into 1.1750 / 1.1800 if momentum kicks on. Options flow and recent expiry “gravity” between 1.1600 – 1.1700 support dip-buying behavior, while obvious liquidity pockets sit above that range. Our plan focuses on accumulating on controlled pullbacks and leaning against a clear invalidation, preserving asymmetric upside into this week’s data pulse. In short: Euro resilience on steady ECB vs. dovish-leaning Fed, constructive structure, and supportive dealer positioning equals a quality long-bias opportunity. EURUSD Trade Setup -21st Oct: Pair / Asset Bias & Entries Stop / Invalidation Targets Why A+ (fundamentals, technicals, sentiment/positioning) Near-term catalysts (UK time) EUR/USD Buy dips 1.1580 – 1.1620; add through 1.1660 – 1.1670 on momentum. 1.1520 (loss of higher-low structure). 1.1750, 1.1800. Fundamentals: ECB officials signaling steady policy (fewer cuts likely) while the Fed leans dovish into Oct meeting; USD rebound seen as short-lived. Technicals: Repeated demand around 1.1600–1.1650 and higher-lows; topside magnet at 1.1750/1.18. Sentiment: “dealer” zones: Persistent (recent months) option/expiry gravity around 1.1600–1.1700 tends to pin price; stops clustered below 1.1550–1.1520 and above 1.1700. (Reuters) Fri 24 Oct: EZ/UK/US flash PMIs 09:00/09:30/14:45; Fri 24 Oct: US CPI 13:30; Thu 30 Oct: ECB decision/press conference (Florence). (SP Global PMI) Chart by TradingView – EURUSD Trade Setup -21st Oct Conclusion: We stay bullish EUR/USD while the higher-low structure holds and the pair trades north of our invalidation zone (1.1520). Our execution will remain disciplined: focus on buying dips toward 1.16, look to add through the 1.1660/70 momentum trigger, and harvest into 1.1750 first, then 1.1800 on extension. Key near-term catalysts (UK time) are the Eurozone/UK/US flash PMIs on Friday morning/afternoon and US CPI at 13:30 the same day, followed by next week’s ECB decision, events that can unlock the topside if they validate the policy-divergence and growth-stabilization narrative. Risks to the view include a hawkish repricing of the Fed path or a downside surprise in European data; either outcome would warrant tightening risk or stepping aside on a close through invalidation. As always, we’ll let levels, data, and discipline lead the trade. For similar Forex Trade Signals please visit our forex trade ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...
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