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Limited positive attempts dominated the movements of the EUR/USD pair during the last session’s trading, to retest the psychological barrier resistance level of 1.0500, with the current movements witnessing attempts to consolidate above them.
From the point of view of technical analysis today, and with a closer look at the 4-hour time frame chart, we find that the pair is trying to build on the support floor of 1.0470/1.0480, but the 50-day simple moving average is still an obstacle for the pair and it meets near the pivotal resistance level of 1.0550 and adds more strength to it. In addition, negative signs began to appear on the Stochastic indicator.
Hence, with daily trading remaining below 1.0550, and most importantly 1.0555, the bearish scenario remains the most preferable, noting that sneaking below 1.0470 facilitates the task required to visit 1.0420 and 1.0390, awaited targets.
As a reminder, the price’s consolidation and closing of the hourly candle above 1.0550 postpones the chances of a decline but does not eliminate them, and we may quickly witness a retest of 1.0600, noting that crossing upwards to the 1.0600 level will immediately stop the downward trend and the pair will recover temporarily towards 1.0675.
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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