Euro is facing solid support, confirmation of the break extends losses 8/9/2023

Yesterday, the euro began to pressure the psychological barrier support level at 1.0700, recording its lowest level at 1.0686 within the gradual downward path.

On the technical side today, we find that the simple moving averages are still pressuring the price from above, and the 50-day moving average meets around the 1.0790 resistance level and adds more strength to it, and this comes in conjunction with the stability of the 14-day momentum indicator below the 50 midline.

We maintain our negative expectations during today’s session, provided that we witness a clear and strong break of the support level of 1.0700, and most importantly 1.0690; this opens the door for further losses, starting at 1.0650, and may extend later to visit 1.0630, the next station.

Activating the proposed bearish scenario depends on trading stability below 1.0790, noting that an attempt to consolidate above the mentioned level may encourage the price to retest 1.0850.

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: 1.0690	R1: 1.0790
S2: 1.0650	R2: 1.0840
S3: 1.0600	R3: 1.0885