Euro is testing resistance and negativity is in place 31/5/2023

The Euro succeeded in achieving the negative outlook as we expected during the previous technical report, touching the first official target station located at 1.0680, recording its lowest level at the last session at 1.0672, to return as part of attempts to rebound bullishly as a result of touching the target represented by the support 1.0680, to test the resistance level of 1.0740.

Technically, and with a closer look at the 4-hour chart, we find that the Euro is still below the previously broken support level, which was transformed into the 1.0740 resistance level around 61.80% Fibonacci correction, and we find the simple moving averages support the bearish price curve and are stimulated by the clear negative signs on the stochastic. Which begins to lose upward momentum.

From here, with steady daily trading below 1.0740, the bearish scenario remains valid and effective, targeting 1.0665 next, and extending to 1.0640.

We remind you that the price consolidated above 1.0740, and closing an hourly candlestick above it, temporarily postpone the downside chances and leads the pair to retest 1.0780 initially.

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: 1.0740
S2: 1.0630	R2: 1.0780
S3: 1.0590	R3: 1.0825