Euro May Have a Temporary Decline

Positive trades dominated the euro’s movements against the US dollar within the expected bullish path during the previous analysis, within a gradual rise towards the top, approaching the official target of 1.2170, recording its highest level during the previous session’s trading at 1.2150.

Technically speaking, we are witnessing the current movements of the euro, a bearish bias, as a result of the clear negative signs on the stochastic indicator, which supports the occurrence of a bearish bias. On the other hand, we find the 50-day simple moving average that continues to hold the price from below, supporting the continuation of the bullish trend in prices.

Despite the conflicting technical signals, we tend to be negative in the coming hours, targeting a re-test of the support level of 1.2060, the correction of 38.20% before attempts to rise again.

Knowing that trading is below 1.2060, the price will be under negative pressure, targeting 1.2030.

Note: the aforementioned re-test scenario does not contradict the upside, whose targets are still located around 1.2170.

S1: 1.2030	R1: 1.2135
S2: 1.1975	R2: 1.2175
S3: 1.1925	R3: 1.2235