Expecting a rally to 0.9537 | 12 October 2022

Technical observation

EUR retraced to the resistance zone it established at 0.9836-0.9818 and bounced at it and since then it has been trading with an increasing bearish bias, today I expect a continuation of this downwards movement towards the supportive level 0.9537 followed by either a clear break below it with a big red candle or a rejection of price at it. If you are currently holding short positions with the pair above, I would recommend that you remain in the trade with your take profit at 0.9537 and stop loss at 0.9926. On the 4 hour chart above as long as price is sustained below the zone 0.9836-0.9818, I can only recommend short positions for EUR.

Trade recommendation

Remain short with your take profit at 0.9537.