Euro is looking for a negative catalyst 2/3/2023

Positive trades dominated the movements of the EURUSD during the previous trading session, building on the support of the psychological barrier 1.0600, recording its highest level at 1.0691.

On the technical side today, and by looking closely at the 240-minute chart, we find that the euro is trying to consolidate above the 50-day simple moving average, which meets near 1.0610, and we notice clear negative pressure signs on the stochastic, which started to lose bullish momentum gradually.

We point out that the possibility of a decline is still valid and effective, but we need to witness a break of 1.0600/1.0610, targeting 1.0575 as the first target, taking into consideration that the price decline below the mentioned level extends the losses of the pair, to be waiting for touching the next target 1.0510 Fibonacci correction 50.0%, and then 1.0450 station deification.,

Breaching upwards and rising above 1.0705 will immediately stop the suggested bullish scenario and lead the Euro-dollar pair to achieve temporary gains, targeting 1.0740, the 61.80% correction, as seen on the chart.

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: 1.0575	R1: 1.0705
S2: 1.0510	R2: 1.0760
S3: 1.0450	R3: 1.0830