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Sideways trades tilted to the positive dominated the euro’s movements against the US dollar to break the resistance level of the descending price channel located at 0.9870, recording the highest level at 0.9976.
From the angle of technical analysis today and carefully looking at the 4-hour chart, we find the euro stable above the simple moving averages that support the possibility of continuing the rise, in addition to the clear positive momentum signs on the 14-day momentum indicator on the short intervals.
From here, and with the stability of the daily trading above the previously breached resistance and transferred to the 0.9860 support level represented by the 50% Fibonacci correction, the bullish scenario is most likely, targeting 1.0000, the first target, taking into account that the consolidation above the target level is a catalyst capable of consolidating the gains to visit 1.0050 initially.
The decline below 0.9860 can thwart the proposed scenario and put the pair under negative pressure again to retest 0.9805 initially, and the negative targets may extend later towards 0.9750.
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: 0.9880 | R1: 1.0005 |
| S2: 0.9805 | R2: 1.0055 |
| S3: 0.9750 | R3: 1.0130 |
