Euro starts attacking the resistance 30/8/2023

The euro achieved significant gains against the US dollar during the previous trading session within the expected bullish context, in which we relied on confirming the breach of the 1.0850 resistance level, explaining that this is a catalyst that enhances the chances of an increase to visit 1.0880, for the pair to record its highest level at 1.0892.

Technically, and by looking at the 4-hour chart, we notice positive crossover signs that began to appear on the simple moving averages that returned to hold the price from below, motivated by the positive signals coming from the relative strength index, in addition to the stability of trading in general above 1.0800.

We tend to rise, but with caution, on the condition that we witness a consolidation of the price above the main resistance level 1.0880, represented by the golden ratio of 61.80% Fibonacci correction, which increases the possibility of touching 1.0915, the first target, and then 1.0955, the 50.0% correction, as the next official stop.

Only from below, the closing of at least an hourly candle below 1.0800 can thwart the suggested scenario, and the official bearish trend returns to control the pair’s movements, targeting 1.0740.

Note: Today, we are awaiting high-impact economic data issued by the US economy “ADP Employment Change” and “the preliminary reading of the GDP” quarterly, and we may witness a high fluctuation in prices 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.

S1: 1.0805	R1: 1.0915
S2: 1.0740	R2: 1.0955
S3: 1.0690	R3: 1.1020