Euro waiting for a signal, all eyes on ECB 25/1/2024

Positive developments were observed in the Euro/Dollar pair’s movements in the previous trading session as it endeavored to offset earlier losses. Leveraging the support at 1.0840, the pair made a resurgence, testing the resistance at 1.0930 once again.

In the context of today’s technical analysis, a closer examination of the 4-hour timeframe chart reveals the pair’s attempt to establish intraday stability above the robust 1.0860 support, indicated by the 50.0% Fibonacci retracement. Simultaneously, intraday trading remains steady below the resistance level of 1.0890, with the 50-day simple moving average presenting a persistent challenge.

It is advisable to closely monitor the pair’s price behavior until a clearer direction emerges, considering the following scenarios:

1. Upside Breakthrough: A decisive move above 1.0890, particularly 1.0900, heightens the likelihood of reaching 1.0925 and subsequently 1.0960, representing a 61.80% correction. Notably, price consolidation beyond 1.0970 serves as a motivating factor, potentially propelling the pair to visit 1.1000.
2. Downward Trend: A bearish trend may materialize with a breach of 1.0840, targeting 1.0800 as the initial station, followed by 1.0765, the anticipated official target.

Caution is warranted today, given the impending release of high-impact economic data from the Eurozone, including the European Central Bank Monetary Policy Committee statement, interest rate announcements, and the press conference by the President of the European Central Bank. Consequently, heightened price volatility may be witnessed during the news release period.

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: 1.0840	R1: 1.0925
S2: 1.0800	R2: 1.0970
S3: 1.0755	R3: 1.1010