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The EUR/USD pair continues to exhibit sideways movement, remaining within the 1.0720 support and 1.0760 resistance levels for the fourth consecutive session.
Technical Outlook:
On the 4-hour chart, the pair is still consolidating below the key resistance level of 1.0760, which coincides with the 50.0% Fibonacci retracement. While the Stochastic oscillator is showing negative signals, suggesting a potential downside, the simple moving averages (SMAs) are providing underlying support and hinting at a possible upward move.
Conflicting Signals and Potential Scenarios:
The persistence of conflicting technical signals necessitates continued observation of price action. Two potential scenarios remain in play:
- Upward Breakout: A clear and strong break above 1.0760 would confirm a bullish trend, potentially leading the pair towards 1.0800/1.0795, with further gains possible towards 1.0840.
- Downward Breakout: A decisive move below the 1.0690 support level, followed by a break of 1.0675, would confirm a bearish trend, targeting 1.0630.
Key Levels:
- Resistance: 1.0760 (50.0% Fibonacci retracement), 1.0800/1.0795, 1.0840
- Support: 1.0720, 1.0690, 1.0675, 1.0630
Important Note:
The release of high-impact U.S. economic data today, specifically the ADP Non-Farm Employment Change report, could trigger significant price volatility. Traders should exercise caution and closely monitor the market’s reaction to this news.
Disclaimer: Trading in CFDs carries inherent risks. The analysis provided herein is not a recommendation to buy or sell, but rather an interpretation of the current price movement on the chart.
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