EURUSD Potential For Bullish Continuation | 6th October 2022

On the H4, price is moving within the descending trendline but in an ascending manner, with the price above ichimoku cloud- we are slightly bullish biased. Price has bounced off the first support and is moving toward the first resistance at 1.00473 where the 78.6% projection sits. If price breaks this level, it will test the second resistance at 1.0194, where the previous swing high sits. Alternatively, the overall bearish momentum could bring price back to test the first support at 0.9870 where the previous swing low and 50% retracement sits. If it breaks this level, we have a strong bearish confirmation to bring the price down to 0.9750 where the swing low and 61.8% projection sits.

Trading Recommendation

Entry: 0.9870

Reason for Entry:

Pullback buy entry 50% retracement

Take Profit: 1.0047

Reason for Take Profit:78.6% fibonacci retracement

Stop Loss: 0.9750

Reason for Stop Loss:

Previous swing low and 38.2% retracement