euro starts attacking the resistance 20/12/2023

In the previous technical report, we maintained a neutral stance due to conflicting technical signals and the pair’s confinement within a sideways price range. It was highlighted that activating buying positions would depend on breaching the pivotal resistance of 1.0960. Subsequently, the pair began its ascent, reaching a peak at 1.0987.

In today’s technical analysis, focusing on the 4-hour time frame chart, the Euro is observed attempting to stabilize intradayly above the 1.0960 level, representing the 61.80% Fibonacci retracement. The 50-day simple moving average continues to guide the price from below, while the Stochastic indicator hovers around overbought areas.

The current inclination is positive, albeit cautiously, contingent on intraday trading maintaining stability above 1.0930. Notably, trading above 1.0960 is deemed a motivating factor that strengthens the potential for an upward move towards 1.1000 as the initial target, followed by 1.1040 and 1.1070 as the next official stations.

Conversely, a robust downward trend necessitates breaking the 1.0860 level, marked as the 50.0% correction. Such a break would pave the way for a descent towards 1.0800 initially.

Traders are advised to exercise caution and remain vigilant given the dynamic nature of the market, and prudent risk management is recommended.

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: 1.0930	R1: 1.1000
S2: 1.0860	R2: 1.1040
S3: 1.0810	R3: 1.1070