Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The US dollar pair continues to move in the downward trend as we expected after it found a strong resistance level around 1.0680, which forced the pair to trade negatively, approaching by a few points the target published in the previous report of 1.0550, recording its lowest level of 1.0570.
From the point of view of technical analysis today, and with a closer look at the 4-hour time frame chart, we continue to favor the downward trend, relying on the continued stability of the movement below the 50-day simple moving average, in addition to the success of the pair in stabilizing below the psychological barrier support level of 1.0600.
From here, with intraday trading remaining below 1.0600 and generally below 1.0640, the downward trend is the most likely, continuing towards the second target of the previous report, 1.0555, a next target, taking into account that the official target of the current downward wave is around 1.0520.
As a reminder, price consolidation above 1.0640 with at least an hour candle closing is capable of postponing the proposed bearish scenario and leading the pair to recover temporarily with the aim of retesting 1.0700/1.0680.
Warning: Today we are awaiting highly sensitive economic data issued by the American economy, “Consumer Confidence,” and we may witness high volatility at the time the news is released.
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.
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