Euro is in a Sideways Range 10/1/2022

Positive trading dominated the euro against the US dollar, but it is still limited within a sideways range between the support level of 1.1300 and below the main resistance level of 1.1380.

Technically, looking at the 4-hour chart, we notice that the price is moving above the 50-day moving average, which supports the possibility of a rise. On the other hand, we find the stochastic indicator is trading around the overbought areas accompanied by the negative signs of the 14-day momentum indicator on the short time frames.

We tend to be negative as long as the price is stable below the strong supply area located at 1.1380, knowing that the decline below the 1.1300 support floor facilitates the task required to visit 1.1270 and 1.1220, respectively.

We point out that the continuation of the bearish tendency depends on the stability of trading below 1.1380, and its breach may stop the proposed scenario and the euro recover by touching 1.1420 and 1.1420 initially.

Note: the risk is high

S1: 1.1270	R1: 1.1370
S2: 1.1220	R2: 1.1420
S3: 1.1160	R3: 1.1465