FX.co ★ EURUSD Potential for Bearish Drop | 6th January 2023

Looking at the H4 chart, my overall bias for EURUSD is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect the price to possibly head towards the 1st support at 1.04818, where the 50% Fibonacci line is. In an alternate scenario, price could possibly head back up towards the 1st resistance level at 1.05948, where the 23.6% Fibonacci line is.

Trading Recommendation

Entry: 1.05262

Reason for Entry: Immediate sell entry at the time of writing to ride the bearish momentum

Take Profit: 1.02964

Reason for Take Profit:

2nd support line

Stop Loss: 1.06351

Reason for Stop Loss:

Recent swing high and slightly above where the 1st resistance line is.