Euro gives up its gains against the dollar 14/9/2022

The European currency fell in the middle of the previous trading session, under pressure from the rise of the US dollar, affected by the continued increase in US inflation levels. We explained that the “consumer price index” has a significant impact, and we may witness high price fluctuations, to visit 0.9990, recording its lowest level at 0.9955.

Technically, the simple moving averages returned to put pressure on the price from above, the pair failed to maintain trading above 1.0060, and the current moves are witnessing stability below the 1.0000 parity point.

The mentioned technical factors increase the possibility of the euro returning to the official descending path to visit the bottom of 0.9900. It should be noted that breaking the mentioned level increases the strength of the bearish trend, opening the door to visit 0.9865 and 0.9810.

From above, in case the pair consolidates above the broken support of 1.0060, we may witness a temporary recovery that aims to retest 1.0130 before determining the next price move.

Note: We are waiting for US inflation data “Producer Price Index,” which has a meaningful impact, and we may witness high price fluctuations.

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: 0.9900	R1: 1.0130
S2: 0.9810	R2: 1.0240
S3: 0.9670	R3: 1.0360