Euro could not hold against the dollar 6/2/2023

The single European currency declined significantly at the end of last week’s trading, as a result of the rise in the US dollar, after the US jobs data, which came out positively, better than market expectations.

On the technical side, we indicated during the last report that the infiltration below the strong support floor at 1.0900 leads the pair to a downward path, with its initial target around 1.0790, as the euro recorded its lowest level last Friday at 1.0781.

Looking closely at the 4-hour chart, we find that the Simple Moving Averages started to cross negatively and pressure the price from above, stimulated by the negative signals of the 14-day momentum indicator on the short-term frames.

Therefore, the bearish bias may be the most likely during today’s session, with intraday trading remaining below 1.0840 and in general below the previously broken support, which has now turned into the resistance level of 1.0890, targeting 1.0740 61.80% Fibonacci correction, a first target, knowing that breaking it might enhance the chances of touching 1.0675.
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Surpassing upwards and rising above 1.0890 can thwart any downside attempts, and the Euro-dollar pair regains the bullish path to retest 1.0990.

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: 1.0730	R1: 1.0890
S2: 1.0675	R2: 1.0995
S3: 1.0575	R3: 1.1050