The Euro Attacks The Resistance

Positive trading dominated the Euro’s movements against the US dollar yesterday, after the European Central Bank President’s statements, reaching its highest level at 1.1692.

On the technical side, the intraday trading stability is above the previously breached resistance 1.1640, represented by the 23.60% Fibonacci correction that supports the rise and trading above the 1.1600 support barrier.

Looking at the 4-hour chart, we find the 50-day moving average that started to provide some catalyst. However, despite the technical factors that support the continuation of the rise that started yesterday, we prefer to wait and see the price behavior of the pair around the current trading levels, waiting for one of the following scenarios:

To resume the upside, we need to witness a clear and robust breach of the 1.1680 resistance level located at the 38.20% Fibonacci correction due to the extent of its importance. Its breach is a catalyst that can enhance the chances of rising to visit 1.1730, 50.0% correction, and the gains may extend to visit 1.1760.

The infiltration below the 1.1640 support level, the 23.80% correction, postpones the chances of a rise but does not cancel it. We may witness a retest of the psychological support level of 1.1600. It should be noted that breaking 1.1600 will put the Euro under negative pressure again, targeting 1.1540 next station.

S1: 1.1600	R1: 1.1715
S2: 1.1540	R2: 1.1760
S3: 1.1495	R3: 1.1825