Euro is hovering around an critical correction 21/8/2023

The Eurodollar pair concluded its weekly trading on a bearish trend, recording its lowest level at the official target station at 1.0840, recording its lowest level at 1.0845.

From the point of view of technical analysis today, the intraday trading of the euro against the US dollar is witnessing stability below 1.0885, Fibonacci correction of 61.80%, as shown on the 4-hour chart, and the simple moving averages still constitute an obstacle in front of the pair, and this comes in conjunction with the clear negative signals on the stochastic.

Therefore, with the continuation of the intraday stability below 1.0910, and in general below the main resistance of the current trading levels 1.0955 Fibonacci correction 50.0%, the bearish trend remains the most likely during the day, knowing that the infiltration below 1.0840 increases and accelerates the strength of the expected trend to visit 1.0800 as the first target, and then 1.0775, an official waiting station .

We remind you that consolidation above 1.0910 postpones chances of a downside move, but does not cancel it, and we are witnessing a retest of 1.0955, noting that the confirmation of the breach of 1.0955, the previously broken support, turned into a resistance level, is able to temporarily thwart the bearish trend, and the pair recovers with the aim of retesting 1.1000 and 1.1030 initially.

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: 10850	R1: 1.0910
S2: 1.0800	R2: 1.0955
S3: 1.0775	R3: 1.1000