The Euro Attacks The Resistance

Positive trading dominated the euro’s movements against the US dollar yesterday, after the European Central Bank President’s statements, reaching its highest level at 1.1692.

On the technical side today, the stability of the intraday trading is above the previously breached resistance 1.1640, represented by the 23.60% Fibonacci correction that supports the upside and the stability of trading in general above the 1.1600 support barrier.

Looking at the 4-hour chart, we find the 50-day moving average that started to provide a positive stimulus. However, despite the technical factors that support the continuation of the rise that began yesterday, we prefer to wait and watch the price behavior of the pair around the current trading levels, to be in front of one of the following scenarios:

To resume the rise, we need to witness a clear and strong breach of the 1.1680 resistance level, 38.20% Fibonacci correction; its breach is a catalyst that can enhance the chances of rising to visit 1.1730 50.0% correction, and the gains may extend to visit 1.1760.

The decline below the 1.1640 support level, the 23.80% correction, postpones the chances of a rise but does not cancel it, and we may witness a retest of the psychological support level of 1.1600. It should be noted that breaking 1.1600 puts the euro under negative pressure again, targeting 1.1540 next station.

S1: 1.1600	R1: 1.1715
S2: 1.1540	R2: 1.1760
S3: 1.1495	R3: 1.1825