Euro is testing the support and confirming the break extends the losses 9/8/2023

Negative pressure dominated the movements of the EUR/USD pair yesterday, within the bearish technical outlook, as we expected, in which we relied on trading stability below the resistance of the psychological barrier 1.1000, heading to touch the first target to be achieved at 1.0950, recording its lowest level at 1.0952.

From the angle of technical analysis today, we find the level of 1.0955 forming a support level at Fibonacci correction 50.0%, which was able to limit the bearish slope, and with careful consideration on the 4-hour chart, we find stochastic around the overbought areas and it started to gradually lose bullish momentum, as well as the averages. The minor moving average is still an obstacle for the pair.

With continued trading stability below the resistance of the psychological barrier 1.1000, and in general without the resistance of 1.1030 represented by the correction of 38.20%, the bearish trend remains the most likely, provided that we witness a clear and strong break of the support level of 1.0955, and this facilitates the task required to visit 1.0885, the initial station of Duqm, whose negative targets extend later towards 1.0840. .

We remind you that the breach to the upside and the price’s consolidation above 1.1030 invalidates the activation of the suggested scenario, and the pair recovers temporarily, and we may witness a retest of 1.1100 before retreating again.

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: 1.0955	R1: 1.1000
S2: 1.0885	R2: 1.1050
S3: 1.0835	R3: 1.1105