Euro is below the support line 16/5/2023

Narrow sideways trading dominated the movements of the euro-dollar pair during the first trading of this week, maintaining the negative path and recording its lowest level at 1.0843.

On the technical side today, and with a closer look at the 240-minute chart, we find the euro stable below the previously broken support line, which turned into a resistance level at 1.0920/1.0920, and we find the stochastic indicator gradually starting to lose bullish momentum, supporting the continuation of the negativity.

With steady trading below 1.0920 and, most importantly 1.0940, the bearish scenario remains valid and effective, knowing that breaking 1.0860 facilitates the task required to visit the expected target 1.0800, and then 1.0775, the next official station.

Rising again above 1.0940 can completely thwart the suggested scenario, and we are witnessing a temporary recovery for the pair with the aim of retesting 1.1000 before determining the next price destination.

Note: Today we are waiting for high-impact economic data issued by the US economy, “US retail sales,” and from the United Kingdom, we are waiting for “the change in unemployment benefits” in addition to “inflation data” from Canada and the speech of the President of the European Central Bank, and we may witness high volatility in prices at the time Release the news.

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: 1.0855	R1: 1.0900
S2: 1.0800	R2: 1.0940
S3: 1.0775	R3: 1.1000