Euro is waiting for a signal 2/11/2023

The EUR/USD pair reached the initial bearish target set in the previous technical report at 1.0530, hitting its lowest point at 1.0515.

Regarding technical analysis today, the pair experienced an upward rebound after approaching the psychological support level of 1.0500. This led to a retest of the 1.0600 resistance, around which the pair is currently hovering. Upon closer inspection of the 4-hour time frame chart, it becomes evident that the simple moving averages support the upward movement of prices, while maintaining…

The pair has achieved stability above 1.0550 on an intraday basis. On the flip side, the Stochastic indicator has started to lose its upward momentum gradually. Furthermore, intraday trading has stabilized below the psychological resistance barrier of 1.0600.

Given these conflicting technical signals, we opt to observe the pair’s price behavior to prepare for potential scenarios:

1. For an upward trend, clear price consolidation above the 1.0600 resistance level on an hourly basis is crucial. In this case, the pair could target 1.0640, representing the 23.60% Fibonacci retracement, and subsequently 1.0670.
2. A decline below 1.0540 puts the pair under negative pressure, with a target of 1.0500. It’s important to note that slipping below this level increases the likelihood of a further decline towards 1.4070.

Please be aware that today, there is anticipation of high-impact economic data originating from the British economy, including the Bank of England Governor’s speech, the interest rate decision, the monetary policy summary, the monetary policy report released by the Bank of England, and the Monetary Policy Committee’s vote on interest rates.

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: 1.0540	R1: 1.0640
S2: 1.0470	R2: 1.0670
S3: 1.0430	R3: 1.0720