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The single European currency continued its decline against the US dollar within the expected bearish path during the previous report, continuing the negative creep towards 1.0720, to hover around its lowest level during today’s early trading at 1.0730.
Technically, and by looking closely at the 4-hour chart, we find that the pair is approaching the key support area 1.0730 represented by 61.80% Fibonacci correction, and the 50-day simple moving average continues to exert negative pressure on the price from above.
The downside trend is the most preferable, but it is better to witness a clear and strong break of the support floor mentioned above 1.0730, which increases and accelerates the strength of the downside trend, opening the door to 1.0650, the next awaited station, and it may extend later towards 1.0610.
The price’s attempt to consolidate again above the previously broken support level, which has now turned into a resistance level at 1.0790, the 50.0% correction, can thwart the suggested bearish scenario, and the pair begins to recover temporarily, to retest 1.0850/1.0830.
Note: Stochastic is around oversold areas, and we may witness some fluctuation until we get the official trend.
Note: Today, we are awaiting high-impact economic data issued by the US economy, “the preliminary reading of the Gross Domestic Product,” quarterly, and we may witness a high fluctuation in prices.
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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