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Narrow sideways trading dominated the movements of the EUR/USD pair within a bullish path to retest the strong resistance level published during the previous analysis at 1.0920, unable to be breached until now.
On the technical side today, the pair’s movements did not show any significant change, and by looking at the 240-minute chart, we find that the pair started pressing the support of the ascending channel. We find the level of 1.0910 that turned from a support level into a resistance level, in addition to the negative intersection of the Simple Moving Averages that started on Pressure on the price from above, stimulated by stochastic entry around overbought areas.
Therefore, we may witness a decline during the next session, targeting 1.0850, considering that below 1.0820 facilitates the task required to retest 1.0770 initially before attempts to rise.
From above, the return of trading stability above 1.0920, and the attachment of an hourly candlestick above it, can postpone the suggested bearish scenario and lead the Eurodollar pair to restore the main bullish trend, to be waiting for the next targets 1.0965 and 1.1000, and the gains may extend towards 1.1040.
Note: Today we are waiting for high-impact economic data issued by the US economy: the results of the Federal Reserve Committee meeting, “consumer price index” and from the Canadian economy, we await ” the interest of the Bank of Canada and the press conference of the Bank of Canada” in addition to “the speech of the Governor of the Bank of England”. We may witness high volatility at the time of the news release.
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.
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