Overview :
The EUR/USD pair’s outlook and further decline is expected with 1.0093 minor resistance intact. Current down trend should move from the last resistance levels of 1.0093, 1.0169 and 1.0228. Firm break there could prompt downside acceleration to last bearish wave of 1.0093.
On the hourly chart, the EUR/USD pair suggests the corrective advance could continue, particularly if the pair surpasses the immediate resistance level at 1.0093. Technical indicators are recovering from extreme oversold readings, holding far below their midlines, a sign that there’s a long way ahead before a substantial recovery takes place.
Moving averages, in the meantime, maintain their bearish slope way above the current level. Furthermore, although the news is bearish for the Euro, professional may not want to sell weakness, but rather following a rebound rally. Additionally, some aggressive counter-trend buyers may be defending parity.
On the upside, break of 1.0093 minor resistance will turn bias back to the upside for stronger rebound. The EUR/USD pair will have been trading in a tight sideway range since yesterday for that the price has also set below the daily resistance 1 at the level of 1.0093.
The EUR/USD pair rate has fallen over 2.5% from its October, 2022 high of 1.0093 to just over 1.0100 at the time of writing on 27 Oct. – 2022, despite the European Central Bank (ECB) finally moving to hike interest rates – it is a high risk and jeopardy.
The EUR/USD pair fluctuates in the 1.0093 area, with risk-shifting increasingly to the downside. If the pair fails to pass through the level of 1.0093, the market will indicate a bearish opportunity below the level of 1.0093. Moreover, a breakout of that target will move the pair further downwards to 0.9900 in order to form the double bottom.
So, the market will decline further to 0.9900 and 0.9854 to return to the daily support 2.
However, if the price of the EUR/USD pair breaks 1.0093 and closes above it, the market will indicate a bullish opportunity above 1.0169 for temporary time.
Trading recommendations:
According to previous events, the EUR/USD pair is still moving between the level of 1.0093 and the 0.9854 level (these levels coincided with the fibonnacci retracement levels 100% and last bearish wave). It should be noted that the 1.0093 price will act as a minor resistance on Oct. 27, 2022. Therefore, it will be too gainful to sell short below 1.0093 and look for further downside with 0.9900 and 0.9854 targets. It should also be reminded that stop loss must never exceed the maximum exposure amounts. Thus, stop loss should be placed at the 1.0228 level today.
The material has been provided by InstaForex Company – www.instaforex.com
