FX.co ★ Technical analysis of EUR/USD for October 18, 2022

The bullish trend is currently very strong for the EUR/USD pair. As long as the price remains above the support at 0.9815, you could try to take advantage of the bullish rally in short term. The first bullish objective is located at 0.9859. The bullish momentum would be revived by a break in this resistance. For two weeks, the EUR/USD pair increased within an up channel, for that Euro hits new highs 0.9859 and 0.9876.

The EUR/USD pair price had a significant breakout above the price of 0.9823. The EUR/USD pair is part of a very strong bullish trend. Traders may consider trading only long positions as long as the price remains well above the levels of 0.9823.

Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.9784, which coincides with a golden ratio (61.8% of Fibonacci).

Consequently, the first support is set at the level of 0.9784. Hence, the market is likely to show signs of a bullish trend around the spot of 0.9784 and 0.9823.

The next resistance located at 0.9876 (this price is coincided with the ratio 61.8% of Fibonacci retracement levels) is the next bullish target to be reached. A bullish break in this resistance would boost the bullish momentum. The bullish movement could then continue towards the next resistance located at 0.9919.

Closing above the pivot point (0.9784) could assure that EUR/USD will move higher towards cooling new highs. The bulls must break through 0.9815 in order to resume the up trend.

Buyers would then use the next resistance located at 0.9876 as an objective (this price is coincided with the ratio 100% of Fibonacci retracement levels - the double top - te last bullish wave on the hourly chart).

The trend is bullish but climbing higher will be strict, our next target 0.9919. Crossing it would then enable buyers to target 0.9919. Be careful, given the powerful bullish rally underway, excesses could lead to a short-term rebound.

The market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside. The trend 's price has been consolidating between the 0.9815 and 0.9919 over the last few weeks, following a massive rising from the 0.9815 mark.

So far, the price has been supported by the 0.9815 and 0.9919 range.

Trading recommendations:

Buy orders are recommended above the golden ratio (0.9784) with the first target at the level of 0.9859. Furthermore, if the trend is able to breakout through the first resistance level of 0.9859. We should see the pair climbing towards the double top (0.9876) to test it. The pair will move upwards continuing the development of the bullish trend to the level 0.9919. It might be noted that the level of 0.9919 is a good place to take profit because it will form a new double top in coming hours.