Euro fails in its attempts to recover 1/9/2023

The EUR/USD pair reversed the expected upward trend during the previous technical report under negative pressure from negative inflation data, invalidating the positive outlook in which we relied on trading stability above 1.0880 at the time the report was issued, explaining that the trading stability below 1.0870/1.0880 with the closing of the 4-hour candle puts the pair in Under negative pressure again, aiming to retest 1.0810, recording the lowest price at 1.0835, replacing the buy position.

Technically, and with a closer look at the 4-hour time frame chart, we notice the return of trading stability below the broken support level of 1.0880, which is represented by the 61.80% Fibonacci retracement and converted into a resistance level, in addition to the return of the negative cross of the simple moving averages.

With trading remaining below 1.0880, the EUR/USD pair may continue its negative movements, targeting 1.0800, an initial station whose bearish targets will extend later to retest 1.0765 and then 1.0710.

Crossing upwards and closing the 4-hour candle above 1.0880 leads the pair to try to recover with targets starting at 1.0920 and then 1.0955. The price behavior must be carefully monitored around the mentioned level due to its importance to the general trend in the immediate term, and a breakout is capable of enhancing the pair’s gains, so we are waiting for 1.1000.

Note: Today we are awaiting high-impact economic data issued by the American economy (US jobs data NFP, average wages, unemployment rate and manufacturing PMI), and from the Canadian economy, we are awaiting “Gross Domestic Product” and we may witness high volatility at the time 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: 1.0800	R1: 1.0900
S2: 1.0765	R2: 1.0955
S3: 1.0700	R3: 1.1010