Euro retests resistance 6/10/2023

For the second session in a row, the EUR/USD pair is trying to reduce its previous losses to retest the pivotal resistance published in the last technical report, located at 1.0550, which it has been unable to break.

Technically, and with a closer look at the 4-hour time frame chart, we find the pair trying to build on the support floor of 1.0470/1.0480, achieved by trying to stabilize intraday above the 50-day simple moving average, and this contradicts the negative signals coming from the Stochastic indicator and a link to the cusp of saturation.

With conflicting technical signals, we prefer to monitor the price behavior of the pair to obtain a high-quality deal to be faced with one of the following scenarios:

Price consolidation and stability above 1.0550 enhances the chances of a temporary rise to visit 1.0585, and gains may extend towards 1.0640 and 1.0680.

Trading stability returns without the support of the psychological barrier 1.0500, and most importantly 1.0470. From here, the official bearish trend returns to control the pair’s movements, with targets starting at 1.420 and 1.0390.

Note: Today, we are awaiting high-impact economic data issued by the American economy, “US jobs data (NFP), average wages and unemployment rates, and we may witness high price fluctuation when the news is released.

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: 1.0470	R1: 1.0550
S2: 1.0420	R2: 1.0585
S3: 1.0390	R3: 1.0640