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The euro traded in negative territory against the US dollar in the previous session, following the anticipated bearish movement outlined in the recent technical report. The currency touched the initial target at $1.0810, reaching a low of $1.0796.
From a technical standpoint, a closer examination of the 4-hour chart reveals that the euro is currently consolidating below the sub-resistance level of $1.0860 and, more broadly, beneath the primary resistance at the current trading levels around $1.0890. This is coupled with ongoing downward pressure from the simple moving averages.
With trading persisting below $1.0860 and crucially below the primary resistance of $1.0890, there is potential for a continuation of the decline. Downside targets include $1.0810, with the official target situated around $1.0870.
A breakout above $1.0890, accompanied by price consolidation, would defer the likelihood of a decline. In such a scenario, we might observe a retest of $1.0935 and $1.0970, corresponding to the 61.80% Fibonacci retracement.
Caution is advised, as high-impact economic data on the US economy—the Consumer Confidence Index—is anticipated today, and market fluctuations may occur 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.
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