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Limited sideways trading that tended to the negativity dominated the euro’s movements against the US dollar, maintaining the regular bearish context working within the descending price channel.
On the technical side, the current moves of the euro against the US dollar are settling below the resistance level of 1.1380, and we notice the negative signs that started appearing on the stochastic indicator on the 4-hour time frame.
The return of the downside path is the most likely, but with caution, as the condition of the returning below the 50-day moving average around the 1.1260 level, facilitating the mission to 1.1240 and 1.1200 as initial targets, considering that the declining below 1.1200 forces the pair to extend its losses towards 1.1170.
Trading stability below 1.1390/1.1380 is an essential and basic condition for continuing the expected bearish daily trend. Its breach will stop the downside trend immediately, and the euro will witness a recovery against the dollar to visit 1.1460.
| S1: 1.1250 | R1: 1.1360 |
| S2: 1.1170 | R2: 1.1400 |
| S3: 1.1105 | R3: 1.1460 |
