The euro is back to stability below the parity point 21/9/2022

We adhered to intraday neutrality during the previous technical report due to a conflict between the technical signals, explaining that we are monitoring the price behavior of the pair. We indicated that the euro is facing a strong resistance level around 1.0050, and activating the bearish trend requires that we witness intraday stability below the parity point 1.0000 and most importantly 0.9980, which facilitates the task required to visit 0.9950 It recorded its lowest level at 0.9953.

Technically, the pair returned to stability below the parity point 1.0000, which constitutes a good resistance level, in addition to the negative crossover of the simple moving averages, which are motivated by the clear negative signs on the 14-day momentum indicator.

Therefore, the possibility of a decline during today’s trading session is still valid and effective, targeting the solid bottom around 0.9900/0.9910, a first target, taking into consideration that the decline below the mentioned level forces the euro to complete the current descending wave to extend its targets towards 0.9865 and 0.9835 as long as the price is stable below 1.0000 And most importantly 1.0050.

The price consolidation above the pivotal resistance 1.0050 can completely thwart the suggested bearish scenario and lead the euro to enter a minor bullish correction targeting 1.0150.

Note: We await the Fed statement and outlook, followed by a press conference. They have a significant impact, and we may witness high volatility in prices, which requires attention to the upcoming moves so that all scenarios are likely to occur.

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: 0.9910	R1: 1.0050
S2: 0.9875	R2: 1.0100
S3: 0.9830	R3: 1.0150