Euro needs a positive catalyst to resume the corrective rise 13/9/2022

As we expected, the single European currency formed a corrective ascending wave against the US dollar, reaching the first target at 1.0195, and recording the highest level at 1.0197.

Technically, the pair found a strong resistance level around the psychological barrier of 1.0200, which forced it to trade negatively again towards retesting the support level of the parity point at 1.0000. However, with careful consideration on the 4-hour chart, we find the 50-day simple moving average that still supports the chances of rising, accompanied by the stability of the momentum indicator 14 days above the mid-line 50.

Despite the clear negativity on stochastic that may lead to price fluctuation, we tend to be cautiously positive, knowing that consolidation above 1.0200/1.0195 is a catalyst that enhances the chances of visiting 1.0265 first target, then 1.0330 next station.

Activating the above-suggested scenario requires stability of daily trading above 1.0060. Breaking it will immediately stop the bullish correction wave and lead the pair to the official descending path, with an initial target of 0.9990.

Note: High Risk

Note: US inflation data is due out today through CPI, it has a big impact, and we may see price swings.

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: 1.0060	R1: 1.0195
S2: 0.9990	R2: 1.0265
S3: 0.9920	R3: 1.0330