Euro awaits pending orders 17/10/2022

The single European currency reached the first required target last Friday at 0.9810, which formed a strong resistance level, causing the euro to fail to stabilize over the psychological barrier of 0.9800.

From the angle of technical analysis today, the pair is now hovering above the support floor level of 0.9700, stable above it, accompanied by attempts to obtain positive signals from the RSI. On the other hand, the 50-day simple moving average still constitutes an obstacle before the pair meets near the resistance level of 0.9780, and adds more strength.

With conflicting technical signals, we prefer to monitor the price behavior of the pair and wait for the activation of the next pending orders.

To get a bullish bias, we need to witness a penetration and consolidation of the price above 0.9780, 38.20% Fibonacci correction, to motivate the price to visit 0.9845, an initial target that may extend later towards 0.9885.

The breach below 0.9695 puts the pair under strong negative pressure targeting 0.9650 and 0.9600, 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: 0.9695	R1: 0.9780
S2: 0.9650	R2: 0.9845
S3: 0.9600	R3: 0.9885