Euro may resume bearish bias 27/10/2023

A downward trend within the expected bearish path dominated the EURUSD pair’s movements. It approached the first target of 1.0500 and posted its lowest level at 1.0520.

The technical aspect today indicates the possibility of resuming the bearish tendency, relying on the stability of intraday trading below the resistance level of 1.0580, and most importantly, the stability of the price below the resistance of the psychological barrier of 1.0600, which is represented by the previously broken support-into-resistance, in addition to the clear negative pressure from the simple moving averages, which still constitute an obstacle.

Therefore, we may witness a bearish bias during today’s trading session, targeting 1.0500 as the first target. We must pay close attention to this level due to its importance to the general trend in the short term, and breaking it will lead the pair to continue achieving losses towards 1.0470 and 1.0430.

Only from above will the return of trading stability and price consolidation above 1.0600 will immediately stop the proposed bearish scenario and the pair will recover to retest 1.0640 and 1.0670, respectively.

Note: Today we are awaiting high-impact economic data in the US, the Core Personal Consumer Expenditure Price Index and we may witness high volatility.

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: 1.0505	R1: 1.0600
S2: 1.0470	R2: 1.0640
S3: 1.0430	R3: 1.0670