Euro Fails to Break The Pivotal Supply Level 23/2/2022

The technical outlook is unchanged, and the movements of the euro against the dollar did not change much after the failure to stabilize above the pivotal supply zone of 1.1380, the key to the bearish trend, to force the pair to approach the required target of 1.1265, recording its lowest level at 1.1285.

Technically, and by looking at the 4-hour chart, we notice the continuation of the negative pressure coming from the simple moving averages, which support the daily bearish curve of prices, in addition to the beginning of pressure on the psychological support floor of 1.1300.

Therefore, there may be an opportunity to resume the decline to visit 1.1265 next station, considering that the decline below it increases the strength of the daily bearish trend, paving the way for the euro to visit the 1.1210 areas. The negative targets may extend later towards 1.1160 if the price is stable below the 1.1380 level, Fibonacci correction 61.80%.

Confirming the breach of 1.1380 might invalidate the bearish scenario, and the pair will recover to visit the initial target 1.1450.

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: 1.1265	R1: 1.1380
S2: 1.1210	R2: 1.1420
S3: 1.1160	R3: 1.1470