Euro maintains negative stability 7/6/2023

The EUR/USD pair touched the first bearish target within the bearish path published during the previous technical report, located at 1.0665, recording its lowest level at 1.0665.

On the technical side today, and with a closer look at the 4-hour chart, we find that the pair is still stable below the main resistance level for the current trading levels 1.0740/1.0730, Fibonacci correction 61.80%, with the continuation of the negative pressure of the 50-day simple moving average, which comes in conjunction with the clear negative signs on the stochastic indicator.

Therefore, we hold onto our negative expectations during today’s session, knowing that the infiltration below 1.0665 paves the way for achieving more losses towards 1.0640 initially, and breaking it would put the pair under strong negative pressure to target 1.0580 initially.

Only from above, closing the 4-hour candlestick above 1.0740, can thwart the bearish scenario, and the pair starts attempts to build an upward wave, with its initial target at 1.0800, the 50.0% correction.

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: 1.0675	R1: 1.0770
S2: 1.0640	R2: 1.0810
S3: 1.0580	R3: 1.0850