Euro touches goal 1/7/2022

Bearish movements dominated the euro against the US dollar within the expected negative outlook during the previous analysis, touching the first target of 1.0400 and approaching by a few points the second target of 1.0375, recording its lowest level at 1.0382.

On the technical side, the trading witnessed a little bullish bounce due to approaching the support barrier represented by our target of 1.0375. However, with a careful look at the 4-hour chart, we find the negative features that returned to dominate the stochastic indicator, accompanied by the price stability below the 50-day simple moving average, which exerts negative pressure on the price.

With the intraday trading stability below 1.0500 and in general, below 1.0550, the strong resistance is represented by the 23.60% Fibonacci correction; therefore, the chances of descending may exist, but provided that we witness a clear and strong break of 1.0385 to target 1.0335, a next station whose targets may extend towards 1.0285 unless we witness stability above 1.0500 and most importantly 1.0550.

Note: the trading mentioned above levels is pivotal for the general trend in the short term.

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: 1.0390	R1: 1.0500
S2: 1.0335	R2: 1.0550
S3: 1.0285	R3: 1.0610