Euro needs to break support to confirm negativity 8/2/2023

Negative trades dominated the pair’s movements within the negative technical outlook, as we expected during the previous technical report, heading towards the first target to be achieved at 1.0660, recording its lowest level at 1.0665.

On the technical side, the pair tried to compensate for the losses during the Federal Reserve Chairman’s speech, based on the support base at 1.0660, to retest 1.0760 and start to decline again; with a closer look at the 4-hour chart, we find that the Simple Moving Averages are still an obstacle in front of the pair and support the continuation of the pair. Hence, the downside comes in conjunction with clear negativity features on the Stochastic indicator, which shows a loss of bullish momentum.

We tend to be negative, with the stability of the price remaining below the resistance of 1.0780, and in general, below 1.0800, on the condition that we witness a break of 1.0700 to facilitate the task required to visit 1.0665, the first target, and then 1.0630, the next waiting station.

The stability of trading during today’s session, below the resistance of the psychological barrier 1.0800, is an essential condition for activating the suggested bearish scenario and breaching it, leading the pair to recover temporarily towards 1.0840.

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: 1.0665	R1: 1.0775
S2: 1.0625	R2: 1.0840
S3: 1.0575	R3: 1.0880