Noor Trends News, Technical Analysis, Educational Tools and Recommendations
A negative trading session dominated the movements of the euro-dollar pair during the previous trading session, within the expected bearish path, recording its lowest level at 1.0707.
From the point of view of technical analysis today, the pair is currently hovering around the 1.0730 support level, represented by a Fibonacci correction of 61.80%, as shown on the 4-hour chart, within bullish rebound attempts; on the other hand, the euro is still stable below the pivotal resistance level 1.0790 at the 50.0% correction which meets near the 50-day simple moving average and adds more strength to it.
The downside trend is the most preferable, but it is better to witness a clear and strong break of the support floor mentioned above, 1.0730, which increases and accelerates the strength of the downside trend, opening the door to to 1.0650, the next awaited station, and it may extend later towards 1.0610.
The price’s attempt to consolidate again above the previously broken support level, which has now turned into a resistance level, according to the concept of reversing the roles of 1.0790, the 50.0% correction, can thwart the suggested bearish scenario, and the pair begins to recover temporarily, to retest 1.0850/1.0830.
Note: Stochastic started to provide positive signals.
Note: Today, we are awaiting high-impact economic data issued by the US economy, “personal consumption spending,” and we may witness high price fluctuations at the time of the 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.
| S1: |