The bullish trend is currently very strong on the EUR/USD pair. As long as the price remains above the support levels of 0.9768 and 0.9700, you could try to benefit from the growth. The first bullish objective is located at the price of 0.9823.
The bullish momentum would be boosted by a break in this resistance (0.9823). The hourly chart is currently still bullish. At the same time, some stabilization tendencies are visible between 0.9768 and 0.9823 in a few minutes.
Together with the relatively large distance to the fast-rising 100-day moving average (0.9823), there are some arguments for a relief rally in coming months on the table.
The EUR/USD pair is at highest against the dollar around the spot of 0.9700 and 1 USD for two weeks - the EUR/USD pair is inside in upward channel. The EUR/USD pair decreased within an up channel, for that the EUR/USD pair its new highest 0.9823.
Consequently, the first support is set at the level of 0.9768. Hence, the market is likely to show signs of a bullish trend around the area of 0.9823.
Our sentiment on the EUR/USD pair - EUR vs. US Dollar :
- Short term : Bullish market in short term.
- Tacit : Bullish market in long term.
Buyers would then use the next resistance located at 0.9823 as an objective. Crossing it would then enable buyers to target 0.9898 (the double top - last bullish week).
Be careful, given the powerful bullish rally underway, excesses could lead to a possible correction in the short term. If this is the case, remember that trading against the trend may be riskier.
It would seem more appropriate to wait for a signal indicating reversal of the trend. The EUR/USD pair price could be awaiting a major upswing if the digital savings manages to slice above a fatal line of the first resistance that sets at the price of 0.9898 (Horizontal red line).
The prevailing chart pattern suggests that if the leading pair could be expecting to rebound from the levels of 0.9769 and 0.9898. On the day, this instrument gained about +1.25% and was traded between 0.9769 and 1 USD over the period. The price is currently at +2% from its lowest and -0.75% from its highest.
If the EUR/USD pair fails to break through the support prices of 0.9768 USD today, the market will rise further to 0.9898 so as to try to break it.
The EUR/USD pair is one the best overall investment for October 2022. However, if you want to try to improve the growth of the EUR/USD pair, thus it seems great to buy above the last bearish waves of 0.9898.
Re-buy orders are recommended above the major resistance rates of (0.9898) with the second target at the level of 1 USD.
Furthermore, if the trend is able to breakout through the second resistance level of 1 USD. We should see the pair climbing towards the next target of 1.0050 The pair will move upwards continuing the development of the bullish trend to the level 1.0075.
It might be noted that the level of 1.0075 is a good place to take profit because it will form a new double top in coming hours.
The general bullish opinion of this analysis is in opposition with technical indicators. As long as the invalidation level of this analysis is not breached, the bullish direction is still favored, however the current short-term correction should be carefully watched. The bulls must break through 0.9823 in order to resume the uptrend.