Euro is looking for price catalysts 31/8/2022

Sideways trades tended to be positive, but weakly positive, within attempts throughout the second session in a row to breach the strong resistance level 1.0050/1.0045, unable to penetrate it until now, confined from below above 0.9980 and from above below 1.0050.

From the angle of technical analysis today, we find the euro trying to build on the support level of 0.9980, and we see the simple moving average supports this idea; and on the other hand, the negative features are still dominating the stochastic indicator.

With the conflicting technical signals and the limited trading between the levels mentioned above, we prefer to monitor the price behavior of the pair to be facing one of the following scenarios:

Consolidation above the extended resistance 1.0055/1.0045 and the price stability above it provides an opportunity for a minor bullish correction, targeting 1.0100 and 1.0130, respectively.

The decline below 0.9980 leads the pair to the official bearish path, and we wait for a retest of 0.9945 and then 0.9900 as the next station before determining the next price movement.

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: 0.9985	R1: 1.0060
S2: 0.9945	R2: 1.0100
S3: 0.9905	R3: 1.0160