Euro attacks the psychological barrier 7/3/2023

The Eurodollar pair started its first weekly trading with a bullish bias, after breaching the resistance level of 1.0660 to start attacking the psychological barrier of 1.0700.

Technically, the simple moving averages provide a positive incentive that enhances the chances of a further rise and is stimulated by the positive momentum signals from the 14-day momentum indicator. On the other hand, we find the stochastic indicator around the overbought areas, which slows the rise, but does not cancel it.

Therefore, with stable trading above 1.0660 and most importantly, 1.0640, the bullish bias is the most likely during the day, knowing that the price’s consolidation above 1.0700 increases and accelerates the strength of the bullish tendency, so we are waiting for touching 1.0745, Fibonacci correction 61.80%, as shown on the chart, before determining the next price destination.

Trading stability and the closing of an hourly candle below 1.0640 leads the Eurodollar pair to the downside path again, with targets starting at 1.0590 and reaching 1.0560.

Caution: Today, the markets are awaiting the semi-annual testimony of Federal Reserve Chairman Jerome Powell before the Senate, and we may witness high volatility.

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: 1.0590	R2: 1.0745
S3: 1.0515	R3: 1.0790