FX.co ★ EURUSD Potential for Bullish Momentum | 20th 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 biased. Price has pulled back slightly and it looks like bearish momentum might bring price to 0.9695 where the 78.6% retracement sits. if it breaks this level, price would test the second support at 0.9545 where the swing low and 161.8% extension sit. Alternatively, price might 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: 0.9654

Reason for Entry:

Pullback buy entry, 78.6% fibonacci retracement

Take Profit: 1.0047

Reason for Take Profit:

Previous swing high, 78.6% retracement

Stop Loss: 0.9543

Reason for Stop Loss:

previous swing low 23.6% retracement