FX.co ★ EURUSD Potential for Bullish Rise | 9th January 2023

Looking at the H4 chart, my overall bias for EURUSD is bullish due to the current price attempting to cross above the Ichimoku cloud, indicating a possible shift to bullish market structure. If this bullish momentum continues, expect the price to possibly break the 1st resistance at 1.06622, where the 78.6% Fibonacci line is, before heading towards the 2nd resistance at 1.07138, where the previous high and liquidity hotspots are. In an alternate scenario, price could possibly head back down to retest the 1st support level at 1.05948, where the 50% Fibonacci line is.

Trading Recommendation

Entry: 1.05948

Reason for Entry: Retest 1st support line

Take Profit: 1.07138

Reason for Take Profit:

2nd resistance line and liquidity hotspot area

Stop Loss: 1.04818

Reason for Stop Loss:

2nd support line and previous swing low