FX.co ★ Trading plan for EURUSD on October 26, 2022

Technical outlook:

EURUSD grew through the 0.9975 high intraday on Tuesday before pulling back lower again. Prices are trading in a very tight range around 0.9950-60 for the last few hours. The instrument is looking to push through 1.0200 before giving in to the bears. A break above 1.0000 will accelerate the climb towards 1.0200 and 1.0350 lined-up resistances in the near term.

EURUSD is developing its final leg higher towards 1.0200 at least with a potential up to 1.0600 as projected on the daily chart. It would then terminate the larger-degree counter-trend rally, which had begun from 0.9535 earlier. Also, note that 1.0600 is the Fibonacci 0.618 retracement of the entire drop between 1.2350 and 0.9935 as seen here. Hence, there is a high probability of a turn lower from there.

EURUSD is well supported at 0.9812, followed by 0.9710 and 0.9630, while resistance comes in around 1.0200, followed by 1.0350. A break above 1.0200 will open the door to testing 1.0350 and higher levels going forward. Only a reversal from current levels and a break below 0.9710 will negate the above bullish structure.

Trading idea:

Potential rally through 1.0200 and 1.0350 against 0.9535

Good luck!