The Euro is Testing Resistance 12/4/2022

The single European currency retested the resistance within the expected limited positive scenario, touching the target at 1.0930, recording its highest level during the last session at 1.0932.

Technically, by looking at the 4-hour chart, we find that the pair returned to stability below the descending channel’s resistance, accompanied by the negative features that returned to dominate the stochastic indicator, which started to lose the bullish momentum gradually, in addition to the stability of trading below the strong resistance level at 1.0930 and most importantly 1.0950, in addition to the stability of the movement below the moving average 50 days.

Therefore, we return to the bearish scenario to be the most likely during today’s session, knowing that trading below 1.0830 facilitates the task required to visit 1.0785, a first target that may extend later to visit 1.0740.

Consolidation above 1.0950 will stop the suggested scenario immediately and lead the pair to restore the temporary positive path, opening the door towards 1.0980 and 1.01030, respectively.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.0835	R1: 1.0930
S2: 1.0785	R2: 1.0980
S3: 1.0740	R3: 1.1030