Euro Settled Below Support And May Experience a Gradual Decline

The technical outlook is unchanged, and the pair’s movements did not change for the second consecutive session, amid quiet trading that dominated the movements of the single European currency against the US dollar. The current movements are witnessing attempts to recover, but still limited.

Technically, and with a closer look at the 60-minute chart, we find that the RSI is trying to get positive signals, but it is still weak.

Moving to the 4-hour chart, we find signs of negativity dominating the stochastic indicator, accompanied by negative pressure coming from the 50-day moving average. From here, trading is steadily below the previously broken support and turned into the 1.2175 resistance level, 23.60% correction.

The bearish scenario remains valid and active, targeting 1.2065, 38.20% correction, an official station awaited, taking into account that the price stability below the mentioned level extends the bearish corrective slope, paving the way for the pair to visit 1.2030.

Only from above, the stability of trading and the price stability above 1.2170/1.2175 will negate the activation of the bearish scenario, and the pair may recover temporarily, with the aim of retesting 1.2230.

Note: Today we are awaiting the Fed statement and the Fed press conference and we may witness high volatility in prices.

S1: 1.2065	R1: 1.2170
S2: 1.2030	R2: 1.2235
S3: 1.1975	R3: 1.2270