We are neutral. | 07 October 2022

Technical observation

For the past two days EUR has been trading with an increasing bearish bias between the supportive level 0.9534 and the resistance zone 1.0367-1.0325, however, I expect a loss of this downward movement followed by a correction to the zone indicated above. My advice, remain neutral and wait for a pullback to the zone 1.0367-1.0325 then sell a bounce within it with your take profit at 0.9534 and stop-loss at 1.0615. In case of a clear penetration below the level 0.9534, I expect the value of EUR to plummet further to the lower side; however, if there is a clear break above the zone 1.0367-1.0325, I expect a possible momentum towards the level 1.1123.

Trade recommendation

Remain neutral.