Euro in a sideways price range 19/12/2023

The EUR/USD pair has experienced constrained movements in recent consecutive sessions, maintaining a stable sideways range with the lower boundary holding above the 1.0860 support and the upper boundary staying below the 1.0960 resistance.

Upon closer examination of the 240-minute time frame chart from a technical perspective today, conflicting signals emerge. The 50-day simple moving average, rising from beneath, lends support to the possibility of an upward movement. However, the Stochastic indicator continues to exhibit negative features.

Given the confined trading activity within the specified levels and the presence of contradictory technical signals, our preference is to closely monitor price behavior for potential developments in one of the following scenarios:

1. Upward Trend:
   A clear and robust breach of the pivotal resistance at 1.0960, represented by the 61.80% correction, is crucial for initiating an upward trend. This breakthrough acts as a catalyst, bolstering the ascent towards 1.1000 as an initial milestone, with subsequent targets extending to 1.1070.
2. Downward Trend:
   The establishment of a downward trend hinges on breaking the resilient support floor at 1.0860, marked by the 50.0% correction. Such a breach would pave the way for a descent towards 1.0800, followed by 1.0760.

The current market conditions, coupled with the conflicting technical signals, underscore the importance of vigilant monitoring to discern the direction in which the pair may unfold.

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: 1.0900	R1: 1.0960
S2: 1.0860	R2: 1.1000
S3: 1.0760	R3: 1.1070