FX.co ★ EURUSD Potential for Bullish Momentum | 26th October 2022

On the H4, price is moving within the short term ascending trendline and breaking the long term ascending trendline, we have a bullish bias that the price may rise to the 1st resistance at 0.99904, which is in line with the previous swing high and 78.6% fibonacci projection. If the 1st resistance is broken, the 2nd resistance is at 1.01971, where the previous swing high and 161.8% fibonacci extension are. Alternatively, the price may drop to the 1st support at 0.98673, which is in line with the 23.6% fibonacci retracement and previous swing low. If the 1st support is broken, the 2nd support is at 0.97521, where the 50% fibonacci retracement sits.

Trading Recommendation

Entry: 0.99904

Reason for Entry:Breakout previous swing high and 78.6% fibonacci projection

Take Profit: 1.01971

Reason for Take Profit:Swing high and 161.8% fibonacci extension

Stop Loss: 0.98673

Reason for Stop Loss:

23.6% fibonacci retracement and previous swing low