Euro Facing Strong Resistance 19/10/2023

For the second session in a row, the euro failed to breach the strong resistance level at the psychological barrier of 1.0600, which forced it to trade negatively during yesterday’s session.

Technically, the current movements are witnessing stability around the lowest level during early trading, 1.0534. A closer look at the 240-minute time frame chart shows the simple moving averages pressuring the price from above. This comes with the clear negative signals on the relative strength index, which supports Negativity. On the other hand, we find the Stochastic indicator clearly around oversold areas.

With conflicting technical signals, we prefer to remain neutral and face one of the following scenarios:

Confirmation of breaking the 1.0500 support level will lead the EUR/USD pair to enter a bearish wave whose targets begin at 1.0470 and 1.0430 and may extend later towards 1.0370.

Price consolidation above the psychological barrier resistance level of 1.0600 motivates the pair to compensate for losses with targets of 1.0640 and 1.0680, respectively.

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: 1.0500	R1: 1.0600
S2: 1.0470	R2: 1.0640
S3: 1.0430	R3: 1.0670