Euro Faces Bearish Pressure 7/11/2023

The EUR/USD pair displayed positive momentum during the initial trading sessions this week, nearing the first target of 1.0760 and reaching a high of 1.0757.

Examining the 4-hour time frame chart from a technical perspective, the pair encountered robust resistance around 1.0760, marked by the 38.20% Fibonacci retracement level. Intraday movements indicate stability below this level. Additionally, signs of a potential downturn are emerging on the Stochastic indicator, with momentum gradually waning.

In the upcoming hours, a bearish bias could prevail, leading to a retest of 1.0640 as the initial target, followed by 1.0610. These levels are pivotal before any potential upward movement resumes.

On the upside, a breakthrough above 1.0760 and consolidation at this level would negate the bearish scenario. In such a scenario, the pair could recover, targeting 1.0800 initially, with the possibility of extending gains towards 1.0840 later.

Traders are advised to closely monitor these key levels for potential trading opportunities, as the EUR/USD pair navigates its short-term path amidst these technical challenges.

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: 1.0615	R1: 1.0505
S2: 1.0550	R2: 1.0770
S3: 1.0505	R3: 1.0805