Euro is advancing against USD and achieving goals 5/10/2022

The euro advanced during the last session’s trading against the US dollar, achieving noticeable gains within the expected technical outlook yesterday, touching the second required official target at 0.9940, recording its highest level around the parity point 1.0000.

Technically, we tend in our trading to the positive, relying on the stability of trading above the breached resistance level of 0.9850 represented by the Fibonacci correction, which has now turned into a support level, in addition to the pair’s continuation of the positive stimulus from the simple moving averages.

Therefore, the bullish bias is the most likely. Still, we may witness a breach and stability of the price above 1.0000, which may consolidate the gains for a visit to 1.0040, the first target, considering that surpassing upwards of the strong resistance level of 1.0040 increases and accelerates the corrective rise towards 1.0110.

Activating the suggested scenario depends on the stability of daily trading above 0.9850, and the decline below the mentioned level postpones the chances of rising. We witness negative pressure that aims to retest 0.9770 and 0.9730, respectively, before attempts to rise again.

Note: Stochastic is around overbought areas, and we might witness fluctuations until we get the desired direction.

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: 0.9845	R1: 1.0040
S2: 0.9730	R2: 1.0115
S3: 0.9655	R3: 1.0230