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Trading tilted to the negative trend that dominated the euro’s movements against the US dollar yesterday, but with limited negativity after the pair closed daily above the support level of 1.0670.
Technically, the euro is hovering around the 1.0670 level, which is the strong support of the 61.80% Fibonacci retracement, as shown in the chart. With a careful study of the 4-hour time frame, we find the momentum indicator started to provide positive crossover signals to gain momentum Bullish and the price stability above the 50-day simple moving average, which continues to carry the price from below.
Therefore, these technical factors increase the probability of resuming the rise that started from the base at 1.0550, targeting 1.0740 first target, then 1.0770 50.0% Fibonacci retracement as an official price stop. Moreover, it increases the strength of the bullish corrective slope and accelerates it so that we will wait for 1.0800 and 1.0840 later.
the suggested bullish scenario above depends on the stability of the intraday trading above 1.0670/1.0660, and most importantly 1.0640, and breaking it and the price stability below it postpones the chances of rising. Still, it does not cancel it, and we witness a retest of 1.0550 before attempts to rise again.
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: 1.0665 | R1: 1.0750 |
| S2: 1.1610 | R2: 1.0800 |
| S3: 1.0550 | R3: 1.0845 |
