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A noticeable rise for the Euro-dollar pair, achieving substantial gains, building on the weakness of the US dollar after the US jobs data, invalidating the technical outlook as we expected. As a reminder, we indicated during the previous technical report that the price’s consolidation once again above 1.0640 would immediately stop the suggested bearish scenario and lead the Euro-dollar pair to retest 1.0745, correcting 61.80. %, recording its highest level during the early morning trading at 1.0740.
Technically, and with a closer look at the 4-hour chart, we find that the pair succeeded in breaching the resistance level of 1.0640 and turned into a support level, and we find the 50-day simple moving average pushing the price to the upside.
The idea of resuming the rise is existing and effective, but on the condition that we witness an hourly candlestick closing above the pivotal resistance level, which represents one of the most important directional keys 1.0745 61.80% correction, which enhances the possibility of touching 1.0780, a first target, and then 1.0845, a next station, whose targets may extend later towards 1.0900.
Only from below, the return of trading stability again below 1.0620 will immediately stop the current bullish movements and renew the chances of the bearish trend taking control as we await a retest of 1.0515, the 50.0% correction.
Alert: Stochastic is around overbought areas, and we may witness some fluctuation until we get the official trend.
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.
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