Euro extends its losses against the dollar 1/6/2023

The EUR/USD pair achieved the bearish targets mentioned during the previous technical analysis, touching the official target station at 1.0640, recording its lowest level at 1.0635.

On the technical side today, by looking at the 240-minute chart, we notice that there are positive attempts for the Euro-dollar pair as a result of touching the strong support floor 1.0640, to settle now near its highest level during the morning trading of the current session around 1.0685, and with close consideration, the simple moving average is still 50 days is an obstacle for the pair. It converges around the main resistance level 1.0640 represented by 61.80% Fibonacci correction.

Therefore, the continuation of the decline is still valid, knowing that breaking 1.0640 enhances the chances of a drop towards 1.0580, the next target, and then 1.0530, the awaited station.

Only from above, closing the 4-hour candlestick above the main resistance 1.0740 can thwart the suggested bearish scenario, and the pair begins to attempt an upward correction, with targets starting at 1.0800/1.0790, the 50.0% correction.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the change in private sector jobs” and the “manufacturing purchasing managers” index, in addition to the report issued by the International Energy Agency regarding oil inventories, and we may witness high volatility in prices 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.

S1: 1.0640	R1: 1.0740
S2: 1.0580	R2: 1.0790
S3: 1.0525	R3: 1.0840