Noor Trends News, Technical Analysis, Educational Tools and Recommendations
For the second session in a row, the single European currency failed to stabilize for a long time by the resistance of the psychological barrier 1.0700, so it returned to trading negatively again within the expected bearish path during the previous technical report, touching the first official target 1.0630, recording its lowest level of 1.0616.
Technically, by looking at the 4-hour time frame chart, we notice the pair’s continued stability below the simple moving averages that support the continuation of the downward curve for prices, accompanied by clear negative signs on the relative strength index and its stability below the 50 midline.
From here, with daily trading remaining below the pivotal resistance of 1.0700, the bearish scenario remains the most preferable, continuing towards the second target of the previous report, 1.0590/1.0600, knowing that breaking the aforementioned level extends the current bearish wave, leaving us waiting to touch 1.0550, the next official station.
As a reminder, price consolidation above 1.0700 with at least an hour candle closing can postpone the proposed bearish scenario and lead the pair to recover temporarily to retest 1.0750, and the gains may extend towards 1.0780.
Note: The Stochastic indicator is about oversold and we may witness some fluctuation until the official trend is obtained.
Warning: Today we are awaiting high-impact economic data issued by the British economy: the Monetary Policy Committee’s vote on interest rates, the interest rate decision, and the monetary policy summary. We are waiting for the “Unemployment Benefits” indicator from the United States of America, and we may witness high price fluctuations at the time of the news release.
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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