Euro Negativity: Confirmation Required 10/11/2023

“We maintained a neutral stance in our intraday analysis due to conflicting technical signals and the trading range bound by 1.0640 as the lower limit and 1.0760 as the upper limit.

In today’s technical outlook, we are leaning towards a bearish bias, noting the initial formation of a bearish pattern on the 4-hour chart and clear negative signals from the Stochastic indicator.

For a more probable bearish scenario, we prefer a decisive break below the key support at 1.0640, identified by the 23.60% Fibonacci retracement. This breakthrough would pave the way for a visit to 1.0600 and then 1.0565.

However, if the pair manages to consolidate above 1.0640 and resumes trading above 1.0760, it would nullify the downside bias, initiating a potential upward correction with initial targets at 1.0800 and 1.0840.

Note: High-impact news events are expected today, including a speech by Christine Lagarde, Governor of the European Central Bank, and key economic releases from the United Kingdom and the United States, such as the monthly GDP index and the preliminary reading of the consumer confidence index by the University of Michigan. Expect heightened price volatility during these announcements.”

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: 1.0740
S2: 1.0605	R2: 1.0770
S3: 1.0565	R3: 1.0805