Euro forms a triple top 5/7/2023

Quiet negative trading dominated the movements of the euro-dollar pair during the previous trading session in light of the US market holiday, and the pair’s moves are still stable below the main resistance, located at 1.0940.

Technically, the 4-hour chart shows that the simple moving averages still constitute an obstacle in front of the pair. We also find a bearish technical formation that supports the possibility of a downside move.

Therefore, the bearish bias is more likely, knowing that the decline below 1.0860 increases and accelerates the strength of the bearish bias, opening the door to visit 1.0800, and the losses may extend later towards 1.0765.

The breach to the upside and the price consolidating again above the aforementioned resistance 1.0940 nullifies the activation of the bearish scenario and leads the pair to restore the bullish path, targeting 1.0970 and 1.1000, respectively.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the Federal Reserve Committee statement,” and the “OPEC meeting”, and we may witness high volatility 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: 1.0860	R1: 1.0900
S2: 1.0820	R2: 1.0940
S3: 1.0765	R3: 1.0970