Euro is hovering around the 50.0% Fibonacci retracement 9/3/2023

The movements of the eurodollar pair witnessed a calm trading session yesterday, after it recorded significant declines against the US dollar after the semi-annual testimony of the Federal Reserve Chairman before the Senate.

Technically, today, the euro is settling below the minor resistance level 1.0575, in addition to the pair’s success in breaking the support floor at 1.0640, which turned into a resistance level according to the concept of role exchange. We find the simple moving averages began to cross negatively and put pressure on the price from above, in addition to the negative signals from RSI.

Therefore, the idea of continuing the decline is valid and effective, but on the condition that we witness a clear and strong break of the strong support floor 1.0515, represented by Fibonacci correction 50.0%, as shown on the 4-hour chart, and that enhances the chances of a drop towards 1.0475, the first target, and then 1.0425, a next official station that may extend. After that, later targets to visit 1.0360.

Only from above, the price’s consolidation once again above 1.0640 will immediately stop the suggested scenario and lead the Eurodollar pair to retest 1.0745, the 61.80% correction.

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: 1.0475	R1: 1.0640
S2: 1.0425	R2: 1.0745
S3: 1.0320	R3: 1.0800