Euro continues to recover against the dollar 31/8/2023

Yesterday, the euro presented a positive trading session against the US dollar within the expected positive outlook, in which we relied on confirmation of the pair’s breach of the 1.0880 resistance level, explaining that this is a motivating factor that enhances the chances of touching 1.0915, a first target, and then 1.0955, a next station, recording its highest level at 1.0945.

On the technical side today, we are leaning toward positivity in our trading, relying on trading stability above the 1.0880 resistance level represented by the 61.80% Fibonacci retracement as shown on the 4-hour time frame chart, in addition to the 50-day simple moving average continuing to provide a positive incentive.

Therefore, we maintain our positive expectations, continuing towards the second target of the previous decision, 1.0955, 50.0% Fibonacci retracement. The price behaviour of the pair around the mentioned level must be monitored due to its importance to the general trend in the short term, and breaching it enhances the opportunity to achieve additional gains starting at 1.1000 and may extend later towards 1.1030.

Trading stability below 1.0870/1.0880 with the closing of the 4-hour candle puts the pair under negative pressure again to retest 1.0810.

Note: The Stochastic indicator is negative and we may witness some fluctuation until the desired direction is achieved.

Note: Today we are awaiting high-impact economic data issued by the American economy, “Personal Consumption Spending,” and we may witness high fluctuation in prices when 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.

S1: 1.0870	R1: 1.0955
S2: 1.0810	R2: 1.1000
S3: 1.0775	R3: 1.1050