Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The EUR/USD pair experienced a decline in the previous trading session, contradicting the anticipated positive outlook. In the earlier report, we relied on the stability of prices above 1.0960, noting that a return to stability below 1.0950 would temporarily halt the upward trend, leading to a retest of 1.0900 and an extension towards 1.0860. The pair recorded its lowest level at 1.0879, compensating for part of a buying position.
From a technical standpoint today, the EUR/USD pair has once again started trading above the robust support level of 1.0860, represented by the 50.0% Fibonacci retracement on the 4-hour chart. Additionally, the Stochastic indicator is attempting to generate positive signals, supporting the notion of a return to the upward trend.
As a result, the most preferred scenario is an upward trend, targeting a retest of the pivotal resistance at 1.0960, the 61.80% Fibonacci retracement. Breaking through this level would be a motivating factor, enhancing the likelihood of gains towards 1.1030 and later 1.1070.
The reversal scenario involves the return of trading stability below 1.0860, putting a halt to the upward trend and leading the pair to retest 1.0810.
Warning: High-impact economic data from the American economy, including the Manufacturing Purchasing Managers’ Index issued by the ISM and a press talk by the Chairman of the Federal Reserve, is expected today. Consequently, we may observe high price volatility at the time of 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.
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