Euro between trend and minor correction 17/8/2022

The euro against the US dollar continues to decline within the expected negative outlook during the previous analysis, approaching a few points from the official station that is required to be touched at 1.0100, recording its lowest level in the last trading session at 1.0120.

Technically, the pair’s intraday movements are witnessing positive attempts as a result of stochastic entering within the overbought areas, and this supports the pair’s attempt to obtain a slight positive momentum coming from the 14-day momentum indicator, which supports the possibility of a bullish bias in the coming hours, targeting a retest of 1.0200 first target and then 1.0240 Before attempts to retreat again.

Warning: the limited bullish bias does not contradict the extension of the current downside wave, whose official target is around 1.0100; the directional movement is bearish unless we witness any trading and consolidation for the price above 1.0275 50.0% Fibonacci correction, as shown on the chart.

Note: UK inflation data, US retail sales data, and the results of the Federal Reserve meeting are due today, which are high-impact data; we may see high volatility in prices and all scenarios are on the table.

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: 1.0130	R1: 1.0200
S2: 1.0090	R2: 1.0240
S3: 1.0060	R3: 1.0275