Euro breaching the resistance 9/6/2023

After several successive sessions in which the sideways movements dominated the Eurodollar pair from below 1.0665 and above 1.0770, we find that the pair started to get positive signs, attacking the main resistance level of the current trading level of 1.0770.

On the technical side, we indicated during the previous report that closing the 4-hour candlestick above 1.0740 can thwart the bearish scenario. The pair begins attempts to build a rising wave, with its initial target at 1.0800, only to record the highest at 1.0787, and with a close look at the 4-hour chart, we find that the simple moving averages have started in providing a positive motive, stimulated by the clear positive signs on the 14-day momentum indicator.

With the pair’s success in breaching 1.0740, the breached resistance represented by Fibonacci correction 61.80%, may lead the pair to build correctional upward attempts, with a target of 1.0800, 50.0% correction, taking into account that the breach of 1.0800, and the price consolidating above it, enhances the chances of rising towards 1.0850, the next station.

Only from below, closing the 4-hour candle below 1.0740 can thwart the bullish scenario, and the sideways trend will return to control the pair’s movements, and we may witness a retest of 1.0700 and 1.0665, before determining the next price destination.

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: 1.0720	R1: 1.0800
S2: 1.0665	R2: 1.0850
S3: 1.0620	R3: 1.0905