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The Eurodollar pair opened its weekly trading, to move within the bearish trend, and starting with an initial breach of the support level of 1.0730, to witness the current movements of the pair stabilizing around the psychological barrier of 1.0700.
Technically, we tend in our trading to be negative, relying on the stability of trading below the support level of 1.0730, represented by Fibonacci correction 61.80%, as shown on the 240-minute chart, in addition to the continuation of the negative intersection of the simple moving averages, which continues to pressure the price from the above.
The downside trend is the most preferred, targeting 1.0680 as a first target, taking into consideration that the infiltration below the mentioned level increases and accelerates the strength of the downside trend, paving the way for the pair to visit 1.0640/1.0650 as a next target. The targets of the current downside wave may extend towards 1.0610.
Price’s attempt to consolidate again above the previously broken support level, which has now turned into a resistance level, according to the concept of reciprocating roles 1.0740 with the closing of the 4-hour candle, that will stop the suggested bearish scenario, and the pair will regain its recovery, aiming to retest 1.0780 & 1.0930.
Note: Today we are awaiting high-impact economic data issued by the US economy, “Consumer Confidence”, and we may witness high price fluctuations at the time of the news release.
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.
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