FX.co ★ Technical analysis of EUR/USD for October 21, 2022

The US dollar's strong gains against the Euro have continued today ahead of the sturdy news. The common currency reached a high of more than three days earlier this morning. This technical analysis of EUR/USD looks at the one-hour chart.

The highest price that EUR/USD reached for that period was 0.9823 (last bullish wave - top). The lowest price that the EUR/USD pair reached during that period was 0.9742 (right now). The bias remains bearish in the nearest term testing 0.9726 or lower.

Immediate support is seen around 0.9726. A clear break below that area could lead price to the neutral zone in the nearest term. Price will test 0.9726, because in general, we remain bearish on Oct. 21st, 2022. Yesterday, the market moved from its top at 0.9823 and continued to drop towards the bottom of 0.9742. Today, on the one-hour chart, the current fall will remain within a framework of correction.

However, if the pair fails to pass through the level of 0.9823 (major resistance), the market will indicate a bearish opportunity below the strong resistance level of 0.9823 (the level of 0.9823 coincides with the ratio of 61.8% Fibonacci retracement). The EUR/USD pair settled below 0.9823 and is testing the support level at 0.9726.

RSI and Moving averages continue to give a very strong sell signal with all of the 50 and 100 EMAs successively above slower lines and below the price. The 50 EMA has extended further below the 100EMA this week.

Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100) and (50). An alternative scenario is a final consolidation below MA 100 H1, followed by growth around the area of 0.9755.

The one-hour chart favors a downward extension, as the pair broke below its 50 and 100 EMAs, both gaining downward traction. Support from MAs comes initially from the value zone between the 50 and 100 EMAs. Industriously, Euro Is Losing ground against U.S. Dollar around +105 pips. Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9755 with the first target at 0.9726 so as to test the double bottom.

If the trend breaks the double bottom level of 0.9726, the pair is likely to move downwards continuing the development of a bearish trend to the level of 0.9691 in order to test the weekly support 2.

According to the previous events the price is expected to remain between 0.9755 and 0.9691 levels. Sell-deals are recommended below the price of 0.9755 with the first target seen at 0.9726. The movement is likely to resume to the point 0.9691.

The descending movement is likely to begin from the level 0.9755 with 0.9726 and 0.9691 seen as new targets in coing hours. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9823.