Euro may continue to decline 18/9/2023

The downward trend continues to control the movements of the EUR/USD pair within a bearish outlook, as we expected during the previous report, in which we relied on confirmation of the pair breaking the support level of 1.0690, touching the official target of 1.0630.

On the technical side today, by looking at the 4-hour chart, we find negative crossover signals continuing to dominate the Stochastic indicator and continued negative pressure coming from the simple moving averages.

With the stability of trading below the resistance level of 1.0690, and the previously broken support converted into a resistance level, the downward trend remains the most preferable, targeting 1.0630 and 1.0600 as the next official station. We must pay close attention to the fact that breaking the support of the psychological barrier 1.0600 extends the pair’s losses, as we await 1.0550, an expected official target.

As a reminder, price consolidation above 1.0700 with at least an hour of candle closing can postpone the proposed bearish scenario and lead the pair to recover temporarily with the aim of retesting 1.0750.

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: 1.0640	R1: 1.0700
S2: 1.0600	R2: 1.0750
S3: 1.0565	R3: 1.0790