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After several consecutive sessions marked by a sideways price range confined between 1.0760 and 1.0800, the euro experienced a surge against the US dollar. This upward movement was supported by the decline of the dollar following the Federal Reserve Committee’s statement on stabilizing interest rates.
From a technical perspective, the euro managed to breach the 1.0820 resistance level, as previously indicated in the recent technical report. The consolidation of prices above this level has the potential to strengthen the pair’s gains toward 1.0860, reaching its highest level at 1.0915. On the 4-hour chart, the 50-day simple moving average has returned to support the price from below. Intraday trading stability above the 1.0860 resistance level, which represents the 50% correction, signals positive momentum. Additionally, the pair is holding above the previously breached resistance, now acting as the 1.0820 support level.
The possibility of a continued upward movement is present during today’s session, albeit with caution. The initial target is set at 1.0955, and surpassing this level could pave the way for further gains, targeting 1.1000 as the next official station.
It’s important to note that a breach below 1.0820 would halt the upward momentum, leading the pair on a downward trajectory. Downside targets include 1.0760 and 1.0720, with potential extensions towards 1.0670.
Cautionary Note: High-impact economic data is expected today from the British economy, including the Monetary Policy Summary, Interest Rate Decision, and Monetary Policy Committee vote on interest rates. Additionally, Eurozone economic data includes Interest Rate Decision, ECB Monetary Policy Statement, and ECB President’s press conference. From the United States, the focus is on US retail sales.
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.
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