Euro trying to break out of the sideways range 13/12/2023

We have maintained a neutral stance for the third consecutive session, primarily due to conflicting technical signals and the pair’s trading range within the confines of 1.0760 as the lower boundary and 1.0820 as the upper boundary.

Upon closer examination of the 240-minute time frame chart from a technical perspective, the simple moving averages persist in exerting negative pressure from below, hinting at the potential for a decline. However, the pair exhibits resilience above the robust support level at 1.0760, marked by the 38.20% Fibonacci retracement.

Given the current trading scenario and the conflicting technical signals, we opt to observe price behavior, awaiting clarity for one of the following potential scenarios:

1. Completion of Downward Bias: This is contingent on breaking below 1.0760, targeting 1.0720 as the initial objective, followed by 1.0685.
2. Enhancement of Gains: Achieved by going above and consolidating the price beyond 1.0820. This has the potential to boost the pair’s gains, aiming for a retest of 1.0860, marked as the initial target represented by the 50.0% Fibonacci retracement.

A word of caution : Today, we anticipate high-impact economic data from the US, including inflation numbers via the “Producer Price Index,” a Federal Reserve Committee statement, a Federal Reserve press conference, interest rate decisions, and economic forecasts. This may lead to significant price fluctuations at the time of the news release. Exercise prudence in navigating these potentially dynamic market conditions.

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: 1.0760	R1: 1.0820
S2: 1.0720	R2: 1.0860
S3: 1.0685	R3: 1.0910