Euro Finds Strong Resistance, May Re-test Support

Quiet trading dominated the euro against the US dollar after a session of achieving strong gains, in which the euro touched 1.2170.

Technically, we find that the Euro started moving within the bearish corrective bias mentioned in the previous analysis. The 1.2170 resistance level represented by the 23.60% Fibonacci retracement remains an intraday obstacle to the EUR’s rally, in addition to the clear negative signs on Stochastic.

From here, we may witness a bearish corrective tendency during today’s session, targeting 1.2085/1.2065 as a first target, knowing that confirming a break of 1.2060 a 38.20% correction may put the pair under strong negative pressure, its target is located around 1.2010.

Only from the top, crossing to the upside and rising again above 1.2170 will immediately stop the bearish intraday moves and lead the Euro to resume the rise with targets starting at 1.2205 and extending to 1.2240.

S1: 1.2085	R1: 1.2170
S2: 1.2010	R2: 1.2205
S3: 1.1975	R3: 1.2240