Euro Touches Goals And Testing Support

The single currency fell significantly during the previous session, as we expected yesterday to touch the target at 1.1720, posting a low of 1.1717.

Technically, looking at the 4-hour chart, we find that the SMA-50 continues to exert negative pressure on the price, while we find that the pair found a solid support floor around 1.1720, Fibonacci 23.60%, in conjunction with positive signs from the RSI on short intervals.

With the conflict of technical signals, we remain neutral, in order to maintain profitability rates, to face one of the following scenarios:

The resumption of the bearish trend depends on the breach of 1.1720 and opens the way directly towards 1.1620 as an initial target that may extend to 1.1565.

Activating long positions requires stability above the aforementioned support, with the need for a clear and strong breach of 1.1785 resistance level, and from here the pair may recover, targeting a re-test of 1.1860.

Warning: Markets await the ECB press conference, there could be some volatility.

S1: 1.1720	R1: 1.1785
S2: 1.1665	R2: 1.1830
S3: 1.1620	R3: 1.1870