Euro touches extended target 6/9/2023

As we expected, the downward trend continued to dominate the movements of the EUR/USD pair, reaching the official target station during the previous technical report at 1.0700, recording its lowest level at 1.0700.

Technically, with a closer look at the 4-hour chart, we find the pair stable below the psychological barrier of 1.0800, accompanied by continued negative pressure on the price from above, and stimulated by the stability of the momentum indicator below the 50 midline.

We maintain our negative expectations during today’s session, provided that we witness a clear and strong break of the 1.0700 support level, which paves the way for further losses starting at 1.0650 and may extend later to visit 1.0620, the next station.

We remind you that activating the proposed bearish scenario depends on trading stability below 1.0800, and more importantly, 1.0850. We generally favor the overall bearish trend as long as trading remains stable below 1.0880, the 61.80% Fibonacci retracement.

Note: Stochastic around oversold areas.

Note: Today we are awaiting high-impact economic data issued on the American economy, the “ISM Services Purchasing Managers’ Index,” and we may witness high volatility at the time of the news’s release.

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: 1.0695	R1: 1.0790
S2: 1.0650	R2: 1.0840
S3: 1.0600	R3: 1.0885