Euro Facing Temporary Negative Pressure

Negative trading dominated the movements of the single European currency within the bearish corrective tendency referred to during last Friday’s report, touching the required retest target of 1.2190, to record its lowest level during early trading for the current session at 1.2178.

Technically, and with a closer look at the 4-hour chart, we find that Stochastic continues its negative movements, and this comes in conjunction with the clear negative signs on the RSI over the short term. Consequently, the euro may resume a temporary gradual decline against the dollar, with the first target of 1.2150 and then 1.2110, respectively.

Returning to trading stability again above 1.2250 will immediately stop any downside movements and lead the pair to the official ascending path, opening the way to visit the top of 1.2305 and may extend to 1.2350.

S1: 1.2155	R1: 1.2250
S2: 1.2110	R2: 1.2305
S3: 1.2065	R3: 1.2345