We are neutral. | 05 October 2022

Technical Observation

On the 4 hour chart above price rose above the level 0.9836 with a big green candle then rose higher towards a resistance zone it established at 1.0107-1.0087, currently price is trading with an increasing bearish bias however I still expect a possible rally to the zone indicated above. If price retraces to this zone, I would recommend that you pick short positions within it with your take profit at 0.9836 and stop-loss at 1.0201, on the chart above; as long as price is sustained below the zone I mentioned earlier I can only recommend picking short positions. Bullish positions can only be advisable in case of a clear break above the zone.

Trade recommendation

Wait for a correction to the zone 1.0107-1.0087 to sell EUR.