Euro exhibits constrained upward movements 17/11/2023

In the recent trading session, the EUR/USD pair made tentative positive moves; however, they remained constrained, leading to a return to stability below the key 1.0870 resistance level.

Examining the 4-hour chart from a technical standpoint today, indications point to a bearish shift. The Stochastic indicator reflects a negative crossover, supporting a downward trajectory, gradually losing its upward momentum. Concurrently, the 14-day Momentum indicator provides clear negative signals.

Anticipating the potential continuation of the downward trend in the next few hours, the pair may target a retest of 1.0800 as its initial objective. A breach below this level could extend losses, revisiting the previously breached resistance, now acting as a support at 1.0760, marking a 38.20% correction and serving as an initial target. Subsequent declines might extend further towards 1.0640.

However, should the price consolidate above 1.0870, with the hourly candle closing above this level, it would promptly negate the anticipated bearish trend. In such a scenario, the pair would likely resume an upward trajectory, setting sights on targets beginning at 1.0920 and then 1.0960, the latter representing a Fibonacci retracement of 61.80% and serving as a significant milestone in the upward movement.

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: 1.0800	R1: 1.0870
S2: 1.0750	R2: 1.0920
S3: 1.0705	R3: 1.0960