Euro stable below resistance 17/10/2023

Quiet trading that tended to negativity dominated the movements of the EUR/USD pair at the beginning of this week’s trading after it found a strong resistance level around the psychological barrier of 1.0600.

The technical outlook remains unchanged, and there has been no significant change in the pair’s movements. With a closer look at the 4-hour time frame chart, we find the pair stable below the secondary resistance at the price of 1.0550. We find that the simple moving averages have begun to put pressure on the price from above, and this comes in conjunction with the negative signals on the Relative Strength Index.

From here, with trading remaining below 1.0550 and, most importantly, 1.0570, the bearish bias is the most likely during today’s trading session, knowing that sneaking below 1.0500 facilitates the task required to reach 1.0470 as a first target, followed by 1.0440 as a next station, and the targets may later extend towards 1.0370.

We remind you that crossing upwards and the price consolidating above 1.0570 postpone the chances of a decline but does not cancel them, and we may witness a retest of 1.0600. We must pay close attention to the fact that confirmation of the pair breaching the psychological barrier resistance level of 1.0600 can completely foil the bearish scenario, and the pair will recover temporarily towards 1.0640 and 1.0670.

Note: Today, we are awaiting high-impact economic data in the US, retail sales index and the annual core consumer price index from Canada, and we may witness high volatility at the time of the news release.

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: 1.0500	R1: 1.0570
S2: 1.0470	R2: 1.0600
S3: 1.0430	R3: 1.0640