Euro is touching the target and needs additional momentum 19/7/2023

The EUR/USD pair reached the first official target required to be achieved during the previous technical report, located at 1.1275, recording its highest level at 1.1275.

On the technical side, the main resistance represented by the target 1.1275 was able to limit the bullish bias, which forced the pair to move within a limited bearish range to retest 1.1200, with a close look at the 4-hour chart, we find the 50-day simple moving average still holding the price from below, On the other hand, we find signs of negativity starting to appear on the stochastic indicator, stimulated by the stability of the RSI below the mid-line 50.

Despite the stability of trading above 1.1200, which makes us tend to be positive, we prefer to confirm the breach of 1.1275, given the importance of this level for the general trend in the short term, and breaching it enhances the chances of visiting 1.1330 and 1.1380, respectively.

We remind you that the return of intraday trading stability below 1.1200 with the closing of an hourly candle postpones the chances of a rise, but does not cancel it, and we may witness a re-test of 1.1160 before attempts to rise again.

Note: Today we are awaiting high-impact economic data issued by the US economy “Housing starts”, and we may witness high volatility 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: 1.1200	R1: 1.1280
S2: 1.1160	R2: 1.1320
S3: 1.1090	R3: 1.1390