Euro is trying to recover amid the general downtrend 25/8/2022

Quiet trading tended to the little positivity that dominated the movements of the euro against the dollar within attempts to benefit from the psychological barrier’s support level of 0.9900, to start the morning’s trading within an upward bias and hovering around the highest level recorded during the Asian session around the psychological barrier resistance 1.0000.

With a closer look at the 4-hour chart, we find the pair is stable below the 50-day simple moving average. The stochastic has gradually begun to lose bullish momentum due to overbought conditions.

Therefore, the bearish scenario is still the most preferred with the stability of trading below 1.0020 and, most importantly, 1.0040, knowing that the return of stability of trading below 0.9930 facilitates the task required to visit 0.9875 first target, and then 0.9840 next official station.

Activating the proposed scenario depends on the price stability below 1.0020, and, most importantly, 1.0040, and the latter’s breach will postpone the chances of a decline. We may witness a temporary recovery towards 1.0080.

Note: The RSI is trying to hold onto its positive signals on short intervals.

Note: The Jackson Hole Economic Forum is taking place today, it has a significant impact on the markets, and we may see random moves.

Note: The preliminary reading of the US quarterly GDP is due, and price volatility may be high.

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: 0.9930	R1: 1.0020
S2: 0.9875	R2: 1.0080
S3: 0.9840	R3: 1.0120