EURUSD Potential for Bearish Momentum | 14th October 2022

On the H4, price is moving within the descending trendline in a descending manner, with the price moving below ichimoku cloud- we are still overall bearish biassed. Although price has bounced off the first support at 0.9695 where the 61.8% retracement sits, it could still break this level and bring price to second support at 0.9545 where the swing low and 161.8% extension sit. Alternatively, price may test the first resistance at 1.0047 where the 78.6% retracement sits. If price breaks this level, it may test the second resistance at 1.0194, where the previous swing high sits

Trading Recommendation

Entry: 0.9695

Reason for Entry:

Breakout sell entry, 61.8% fibonacci retracement

Take Profit: 0.9545

Reason for Take Profit:Swing low 161.8% extension

Stop Loss: 0.9897

Reason for Stop Loss:

previous swing low 23.6% retracement