Euro Retests Resistance

The resistance levels at 1.1610 constituted an obstacle for the pair to retest it successfully as we expected, and the current movements are still below it.

Technically, by looking at the chart, we notice that the price stabilizes intraday below the 50-day moving average. This comes in conjunction with the clear negative crossover signs on the stochastic indicator.

We believe that touching the resistance level of 1.1610 represented by the 23.60% Fibonacci correction around the descending trend line constitutes an obstacle preventing the pair’s advancement. Therefore the bearish scenario will remain valid and active, targeting 1.1550, and breaking it will open the door to visit 1.1500 next station.

The price behavior of the pair should be monitored around the resistance level of 1.1610 and, most importantly, 1.1640, because a breach of the latter can postpone the expected bearish scenario, and the euro may start moving within a temporary ascending path targeting 1.1690/1.1680.

S1: 1.1550	R1: 1.1610
S2: 1.1500	R2: 1.1640
S3: 1.1440	R3: 1.1680