Fundamental analysis

EUR/USD Technical Analysis and Trading Tips for October 26, 2022

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As of writing, EUR/USD was trading near the level of 1.0025, having managed to develop an upward correction from the local low of 0.9705 reached last week and breaking into the zone of a short-term bull market, above the resistance levels 0.9910 (50 EMA on the daily chart), 0.9858 (200 EMA on the 4- hourly chart), 0.9846 (200 EMA on the 1-hour chart).

However, further growth in the EUR/USD pair will be fraught with significant difficulties, given the approaching winter and gas shortages, and from a fundamental point of view, we should expect a resumption of decline, at least, and as a maximum, a further fall of the pair towards 20-year lows, when it traded near 0.8700, 0.8600.

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In general, the downward dynamics of EUR/USD remains, while below the key resistance levels 1.0260 (144 EMA on the daily chart), 1.0440 (200 EMA on the daily chart), the pair is in the zone of a long-term bear market.

The first signal for the resumption of short positions will be a breakdown of today’s low at 0.9944, and a confirming one will be a breakdown of support levels 0.9858, 0.9846.

In an alternative scenario, the corrective growth will continue towards the resistance levels 1.0195, 1.0260, 1.0440.

Support levels: 0.9944, 0.9910, 0.9858, 0.9846, 0.9800, 0.9700, 0.9600, 0.9535, 0.9500, 0.9400, 0.9300, 0.9200, 0.9000

Resistance levels: 1.0047, 1.0100, 1.0195, 1.0260, 1.0440, 1.0550

Trading Tips

Sell Stop 0.9930. Stop-Loss 1.0065. Take-Profit 0.9910, 0.9858, 0.9846, 0.9800, 0.9700, 0.9600, 0.9535, 0.9500, 0.9400, 0.9300, 0.9200, 0.9000

Buy Stop 1.0065. Stop-Loss 0.9930. Take-Profit 1.0100, 1.0195, 1.0260, 1.0440, 1.0550

The material has been provided by InstaForex Company – www.instaforex.com


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