Euro testing resistance and negativity remains 20/9/2023

Limited positive attempts dominated the EUR/USD pair during the previous trading session, retesting the psychological barrier resistance level of 1.0700 and failing to stabilize above it for a long time.

On the technical side today, the 50-day simple moving average still represents an obstacle to achieving further rise, and the 50-day average meets around the 1.0700 resistance and adds more strength to it, in addition to the clear signs of declining momentum on the 14-day momentum indicator on short time frames.

From here, with the stability of trading below the 1.0700 resistance level, the previously broken support that was converted into a resistance level, the downward trend remains the most preferable, targeting 1.0630 and 1.0600 as the next official stations. We must pay close attention to the fact that breaking the support of the psychological barrier 1.0600 extends the pair’s losses as we await 1.0550, an awaited official target.

As a reminder, price consolidation above 1.0700 with at least an hour candle closing can postpone the proposed bearish scenario and lead the pair to recover temporarily to retest 1.0750, and the gains may extend towards 1.0780.

Note: Today, we are awaiting high-impact economic data issued by the American economy “the Federal Reserve Committee statement, the interest rate decision and forecast, followed by a press conference. We may witness high price fluctuations at the time the news is released.

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: 1.0640	R1: 1.0700
S2: 1.0600	R2: 1.0750
S3: 1.0565	R3: 1.0790