Euro Maintains Bearish Trend 5/1/2022

The single European currency traded within the same expected price range during the previous analysis, maintaining negative stability below the 1.1330 resistance level, unable to penetrate it so far.

The technical aspect today indicates the possibility of continuing the decline. With a careful look at the 4-hour chart, we find the 50-day simple moving average that continues the negative pressure, in addition to the stability of the daily trading below the main supply area 1.1380.

Therefore, today’s preferred scenario is the bearish scenario, targeting 1.1260, a first target, and breaking it increases the strength of the bearish trend. We will be waiting for 1.1220, and losses may extend to visit 1.1160.

The above-suggested scenario depends on the stability of trading below 1.1380; breaking it will cancel that scenario, and we will witness a positive trading session with the first target at 1.1460.

Note: The 14-day momentum indicator provides positive signals on short intervals.

S1: 1.1260	R1: 1.1360
S2: 1.1220	R2: 1.1420
S3: 1.1160	R3: 1.1465