Technical Analysis 14 October 2026 EUR/USD H-1 The EUR/USD 1-hour chart demonstrates a strong bullish recovery off recent swing lows, with price now testing a major horizontal resistance line and trading steadily above its moving average. The momentum suggests potential continuation toward higher overhead resistance levels. 1. Core Price Action & Structure * Current Price: 1.12086 * Immediate Resistance Zone: 1.12360 – 1.12620 (Key overhead barrier where previous rallies encountered strong selling pressure). * Immediate Support Zone: 1.11840 – 1.11580 (Solid demand zone where the recent upward reversal originated). * Moving Average Dynamic: Price is holding firmly above its short-term moving average line, establishing a clear bullish trend structure on the hourly timeframe. 2. Indicator Confluence * Relative Strength Index (RSI - 14): Currently standing at 65.82. This indicates strong bullish momentum approaching conditions close to overbought status. * MACD (12, 26, 9): Positioned at 0.000703 / 0.000587 above the zero line with positive histogram bars. This signals sustained upward momentum. * Bears Power (13): Reads 0.000841, reflecting buyers maintaining firm control over short-term price action. 3. Strategic Entry Scenarios Scenario A: Bullish Breakout (Long Entry) * Entry Trigger: A decisive 1-hour candle close above 1.12100 or a minor pullback to 1.11950 near moving average support. * Stop Loss: 1.11840 (placed below immediate support and the moving average line). * Take Profit Targets: * Target 1: 1.12360 * Target 2: 1.12620 Scenario B: Bearish Pullback (Short Entry) * Entry Trigger: A 1-hour candle closing firmly back below 1.11840, indicating false breakout resistance at 1.12086. * Stop Loss: 1.12150 (above immediate resistance high). * Take Profit Targets: * Target 1: 1.11580 * Target 2: 1.11300 Risk Management Note As RSI approaches 65.82, a minor intraday consolidation or shallow retest near 1.12000 may occur prior to a push higher. Ensure confirmation of candle closes to avoid false breakouts. Maintain a strict risk-to-reward ratio of at least 1:2 on all trade setups. Would you like me to adjust any specific target levels or risk-reward parameters for this analysis?
