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Negative trading dominated the movements of the EUR/USD pair after it collided with the psychological barrier resistance level at 1.0600, which forced the pair to retest 1.0500.
On the technical side today, with a closer look at the 4-hour chart, we find the pair stable below the sub-resistance at 1.0550. We find the simple moving averages starting to put pressure on the price from above, and this comes in conjunction with the clear negative signals on the relative strength index.
From here, with trading remaining below 1.0550 and most importantly, 1.0570, the bearish bias is the most likely during today’s trading session, knowing that sneaking below 1.0500 facilitates the task required to reach 1.0470 as a first target, followed by 1.0440 as a next station, and the targets may later extend towards 1.0370.
Crossing upwards and the price consolidating above 1.0570 postpones the chances of a decline but does not cancel them, and we may witness a retest of 1.0600. We must pay close attention to the fact that confirmation of the pair breaching the psychological barrier resistance level of 1.0600 can completely cancel the bearish scenario, and the pair will recover temporarily towards 1.0640 and 1.0670.
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.
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