Euro attacks resistance 12/9/2023

Calm trading that tended to be positive dominated the movements of the EURUSD pair at the beginning of this week’s trading, starting with an upward trend, attacking the 1.0750 resistance level, recording its highest level at 1.0769.

On the technical side today, with a closer look at the 4-hour time frame chart, we notice that the 50-day simple moving average is still an obstacle for the pair and meets near the main resistance level of 1.0790, adding more strength. On the other hand, we find the relative strength index provides positive signals. The Stochastic indicator is trying to get rid of the current intraday negativity.

With conflicting technical signals, we prefer to monitor the price behavior of the pair to be faced with one of the following scenarios:

Resuming the upward path, we need to witness the price consolidating above 1.0790, which is a motivating factor that enhances the chances of a rise to visit 1.0840, and the gains may extend later to visit 1.0880.

Confirmation of breaking the support floor of the psychological barrier 1.0700, and most importantly 1.0690, leads the pair to the official bearish path, with an official target around 1.0630.

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: 1.0690	R1: 1.0790
S2: 1.0650	R2: 1.0840
S3: 1.0600	R3: 1.0885