Euro’s recovery attempts need confirmation 29/8/2023

We adhered to intraday neutrality during the first trading sessions of this week due to the inconsistency between the technical signals, to find the EUR/USD pair trying to recover and now hovering around its highest level during the early trading of the current session at 1.0836.

On the technical side today, and by looking at the 4-hour chart, we find that the Euro is trying to establish a support floor around the psychological barrier of 1.0800. We also find that the RSI is trying to gain additional momentum, stabilizing above the mid-line of 50.

Despite the technical factors that support the possibility of a bullish bias in the coming hours, we prefer to witness a clear and strong breach of the 1.0850 resistance level around the 50-day simple moving average, and that may be a catalyst that temporarily enhances the pair’s gains, to retest 1.0880 Fibonacci correction. 61.80%, and if the pair fails to breach the level as mentioned above and returns to trading again below 1.0800, from here, the official bearish trend returns to control the pair’s movements, to be waiting for 1.0765 and 1.0730 for official waiting stations that may extend later towards 1.0700.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Composite Home Prices” and “Consumer Confidence.”

“Vacancies and labour turnover” and we may witness a high price fluctuation at the time of the news 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: 1.0800	R1: 1.0850
S2: 1.0765	R2: 1.0885
S3: 1.0730	R3: 1.0930