The Euro is temporarily rising 5/5/2022

A positive trading session dominated the EUR/USD moves despite the Fed’s 50bp hike in interest rates, the most significant rate hike in 20 years.

Technically, we find the euro building on the psychological barrier’s 1.0500 support floor, in addition to breaching the 1.0530 level and by looking closely at the 4-hour chart, we find the 50-day moving average returned to hold the price from below, and we also find the 14-day momentum indicator that provides signals Positive on short time frames.

There is a possibility to complete the temporary bullish path with a target of 1.0670, considering that the confirmation of the breach of 1.0670 may reinforce the euro’s gains, so we will wait for a 1.0700 50.0% Fibonacci correction.

Activating the bullish scenario suggested above depends on trading stability above 1.0500. The decline below forces the bearish trend to return to control the pair, with an initial target of 1.0450, and it may extend later towards 1.0400.

Note: Stochastic is trading around overbought areas.

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: 1.0530	R1: 1.0670
S2: 1.0450	R2: 1.0725
S3: 1.0400	R3: 1.0805