Euro is stable below resistance 5/6/2023

The bearish trend regained control of the EUR/USD pair after the US dollar received positive momentum after the US jobs data came in better than expected.

On the technical side today, by looking at the 240-period chart, the current movements of the pair stabilize below the main resistance level of the current trading levels 1.0740, represented by 61.80% Fibonacci correction, and we find that the simple moving averages returned to pressure the price from above and enhance the chances of a downside.

With the stability of intraday trading below the resistance above level 1.0740, the bearish directional bias is the most favorable during today’s trading, targeting 1.0665 as the first target, and then 1.0640 as a next awaited station.

From above, closing the 4-hour candlestick above 1.0740 can thwart the bearish scenario, and the euro starts trying to form a rising wave, with initial targets starting around 1.0770 & 1.0800, the 50.0% correction, as an official station.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Service PMI” and “European Central Governor Lagarde’s speech,” and we may witness high price fluctuations at the time of the news release.

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: 1.0665	R1: 1.0770
S2: 1.0635	R2: 1.0810
S3: 1.0580	R3: 1.0850