Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The single European currency managed to retest the support mentioned during the previous analysis at 0.9744, recording the lowest level at 0.9752 within the bullish rebound attempts that are approaching to retest the 0.9850 resistance level.
On the technical side today, the pair found a strong resistance level at 0.9850, represented by the 50.0% Fibonacci correction. As we explained yesterday, it is essential to continue activating the corrective bullish scenario against the dollar. With careful consideration of the 4-hour chart, we find the 50-day simple moving average holding the price from below and meets near the support floor that was established at 0.9740 and adds more strength to it. In addition, we find the 14-day momentum indicator continues to get signs that support a rise.
Therefore, the bullish scenario may be the most likely today but provided that we witness a clear and strong breach of 0.9855, 50.0% Fibonacci correction, and that enhances the chances of touching 0.9905 first target, and then 0.9940 next target.
The continuation of the bullish correction view mainly depends on the stability of the daily trading above 0.9740. The decline below the mentioned level will immediately stop the attempts to rise and renew the negative pressure opportunities waiting for 0.9715 and 0.9675, respectively.
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: 0.9770 | R1: 0.9855 |
| S2: 0.9715 | R2: 0.9905 |
| S3: 0.9670 | R3: 0.9955 |
