Euro starts negative, all eyes on ECB 26/10/2023

Negative trading dominated the movements of the euro against the US dollar, invalidating the bullish scenario expected during the previous report, in which we relied on the stability of intraday trading above the level of 1.0570 at the time the report was issued, clarifying that sneaking below 1.0560 constitutes a negative pressure factor on the pair’s trading.

Technically, and by carefully looking at the 4-hour time frame chart, we find the pair stable around its lowest level during morning trading at 1.0545, stable below the resistance level of 1.0580, and in general below the resistance level of the psychological barrier of 1.0600, in addition to the continued negative pressure coming from the simple moving averages.

Therefore, we may witness a bearish bias during today’s trading session, targeting 1.0500 as the first target. We must pay close attention to this level due to its importance to the general trend in the short term, and breaking it will lead the pair to continue achieving losses towards 1.0465 and 1.0430.

Trading stability and price consolidation above 1.0600 will immediately stop the proposed bearish scenario and the pair will recover to retest 1.0640 and 1.0670, respectively.

Note: Today we are awaiting high-impact economic data issued by the Eurozone (European Central Bank Monetary Policy Committee statement, European Central Bank press conference, interest rates on the euro)

In the US, (preliminary estimates of gross domestic product).

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: 1.0505	R1: 1.0600
S2: 1.0465	R2: 1.0640
S3: 1.0430	R3: 1.0670