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Attempts that tended towards a marginal rise witnessed the movements of the EUR/USD pair approaching retesting the resistance level of the 1.0500 psychological barrier, which has been stable below it until now.
Technically, and with a closer look at the 4-hour time frame chart, we find that the pair failed to maintain stability above the broken support of 1.0550 with the continued negative pressure coming from the simple moving averages and the negativity of the Stochastic indicator.
From here, with the stability of intraday trading below 1.0550 and below the resistance of the psychological barrier of 1.0600, the downward trend is the most preferable; towards the second goal of the previous report, 1.0430/1.0420 is the first goal. Note that sneaking below the mentioned level increases and accelerates the strength of the daily downward trend, opening the way to visit 1.0380. Losses may extend later towards 1.0350.
The price’s consolidation and closing of the hourly candle above 1.0550 postpones the chances of a decline but does not eliminate them, and we may witness a retest of 1.0600, noting that crossing upwards to the 1.0600 level will immediately stop the downward trend and the pair will recover temporarily towards 1.0675.
Note: Today we are awaiting high-impact economic data issued by the US economy: the change in private sector jobs, the services purchasing managers’ index issued by the ISM, the meeting of the OPEC Joint Ministerial Follow-up Committee, and the speech of Christina Lagarde, President of the European Central Bank, and we may witness high volatility 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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