Euro is retesting support 22/8/2023

After several successive sessions of decline, the euro-dollar pair started its daily trading on an upward slope, attempting to take advantage of the support level of 1.0885 to witness the current movements stabilizing around its highest level during the morning trading at 1.0915.

Technically, by looking at the 4-hour chart, we find the pair is stable above the 1.0880 support represented by 61.80% Fibonacci correction, and we find the simple moving average is trying to push the price to the upside.

Despite the technical factors that support the possibility of an upward move, trading stability is below 1.0955, the 50.0% correction, in addition to the entry of the stochastic indicator near the overbought areas, which encourages us to keep our negative expectations, provided that we witness a clear break of the support floor of 1.0885, targeting 1.0840 and 1.0800 targets. Accordingly, knowing that breaking the latter opens the door to visit the target 1.0775.

Only from above, the closing of at least an hourly candle above the main resistance of the current trading levels of 1.0955 will immediately stop the bearish trend, and the pair will start a corrective ascending wave with targets of 1.1000 and 1.1030 initially.

Note: Today, we are waiting for the summit of the Bricks, and we may witness high price fluctuations.

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: 10850	R1: 1.0955
S2: 1.0800	R2: 1.1000
S3: 1.0775	R3: 1.1030