Euro is waiting for a new directional signal 5/1/2023

We adhered to our intraday neutrality during the previous report, due to conflicting technical signals, to find the EUR/USD pair moving in a narrow path confined from below above the support level of 1.0520, and from above below the resistance level of 1.0630.

On the technical side today, we find current trading stable below the resistance level of 1.0630, which constitutes an obstacle in front of the pair and converges near the simple moving average that continues to pressure the price from above, in addition to the stability of the momentum indicator below the mid-line 50, which are factors that increase the possibility of a return to the bearish bias, on On the other hand, we find the stochastic indicator trying to get rid of the current negativity within attempts to gain additional momentum.

With conflicting technical signals, we prefer to monitor the price behavior for the second session in a row, to be in front of one of the following scenarios:

Confirmation of the breach of 1.0520, Fibonacci correction of 50.0%, as a sign of the trend turning into a bearish one, with targets starting at 1.0430 and extending towards 1.0335 initially.

Crossing upwards and rising again above the previously broken support 1.0640/1.0660. From here, the pair recovers to resume the bullish path, with the first target of 1.0700, then 1.0740, the 61.80% correction, and the gains may extend later to visit 1.0790.

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: 1.0560	R1: 1.0660
S2: 1.0500	R2: 1.0700
S3: 1.0465	R3: 1.0740