FX.co ★ EURUSD Potential for Bearish Momentum | 25th October 2022

On the H4, price is moving within the descending trendline in a descending manner, with the stoch is testing the resistance, the price may drop from the 1st resistance at 0.99192, which is in line with the overlap resistance to the 1st support at 0.97539, where the overlap support and 50% fibonacci retracement are. If the 1st support is broken, the 2nd support is at 0.96581, which is in line with the swing low. Alternatively, the price may break the 1st resistance and rise to the 2nd resistance at 1.00545, where the 78.6% fibonacci retracement sits.

Trading Recommendation

Entry: 0.99192

Reason for Entry:

Overlap resistance

Take Profit: 0.97539

Reason for Take Profit:Overlap support and 50% fibonacci retracement

Stop Loss: 1.00545

Reason for Stop Loss:

78.6% fibonacci retracement