Euro is trying to break through the resistance 21/3/2023

Quiet movements dominated the euro-dollar pair with a gradual rise to the upside, recording its highest level during the previous session’s dealings, near the pivotal resistance of 1.0740.

From the angle of technical analysis and by looking at the 240-minute chart, we notice that the 50-day simple moving average continues to provide a positive motive that supports the possibility of an upside, in addition to the positive momentum coming from the 14-day momentum indicator. On the other hand, we find the stochastic indicator above the 80 level around the overbought areas.

We tend to be positive, but with caution, on the condition that we witness a clear and strong breach of the pivotal resistance level 1.0740, represented by Fibonacci correction 61.80%, as shown on the chart, knowing that its breach extends the current bullish wave, to be waiting for recording 1.0790 and 1.0850, respectively.

Suppose the pair fails to breach the resistance above and returns to trading again below 1.0650. In that case, this will put the pair under strong negative pressure and stop the aforementioned ascending wave, and we will wait for the Euro-dollar pair around 1.055 and 1.0515, the 50.0% correction.

Note: Today we are awaiting the speech of the “European Central Bank Governor”, and we may witness high price fluctuations.

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: 1.0650	R1: 1.0745
S2: 1.0590	R2: 1.0790
S3: 1.0550	R3: 1.0850