Euro is trying to take advantage of the support 22/5/2023

The euro-dollar pair ended its weekly trading last Friday with a limited rise, taking advantage of the US dollar’s decline and the pair’s consolidation above the support level of 1.0760.

On the technical side today, the current movements of the Euro-dollar are witnessing stability around the top of 1.0830. With a closer look at the 4-hour time frame, we find the Simple Moving Average trying to provide a positive impulse and accompanying the 14-day momentum indicator’s attempts to gain enough momentum that can push the pair to the upside.

We tend to be positive in our trading despite the clear negative signs on the stochastic indicator, targeting a retest of 1.0860 resistance represented by Fibonacci 38.20% as a first target, knowing that the price’s consolidation above the mentioned level is a positive factor that may enhance the chances of touching 1.0880 and 1.0920 later.

Activating the suggested scenario requires consolidating daily trading above 1.0790, the 50.0% correction, with an hourly candle closing below it, which will put the pair under negative pressure, its initial target at 1.0730, and extend later to visit 1.0700, before determining the next price destination.

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: 1.0780	R1: 1.0850
S2: 1.0735	R2: 1.0880
S3: 1.0700	R3: 1.0930