Euro is in a sideways range, and breaking the support reinforces the decline 10/8/2023

Narrow sideways trading dominates the movements of the Euro-dollar pair for the third consecutive session, confined from the bottom above 1.0955 and the top below 1.1000.

Technically, we find the level of 1.0955 forming a support level represented by Fibonacci correction 50.0%, which was able to limit the bearish slope. With a closer look at the 4-hour chart, we find that stochastic is gradually losing bullish momentum, and we also find that the simple moving averages are still forming obstacles.

With continued trading stability below the resistance of the psychological barrier 1.1000, and in general below the resistance of 1.1030 represented by the correction of 38.20%, the bearish trend remains the most likely, provided that we witness a clear and strong break of the support level of 1.0955, and this facilitates the task required to visit 1.0885, the initial station, whose negative targets extend later towards 1.0840. .

The breach to the upside and the price’s consolidation above 1.1030 invalidates the activation of the suggested scenario. The pair recovers temporarily, and we may witness a retest of 1.1100 before retreating again.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Consumer Price Index” and “Weekly Unemployment Claims”, and we may witness high price volatility.

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: 1.0955	R1: 1.1000
S2: 1.0885	R2: 1.1050
S3: 1.0835	R3: 1.1105