The euro breaks the support 13/5/2022

During the previous trading session, the euro incurred strong losses against the US dollar to complete the bearish directional movement that the pair confirmed by breaking the mentioned low during all reports this week at 1.0500, heading towards the official target station at 1.0400, recording its lowest level at 1.0353.

Today, the technical side indicates the possibility of continuing the decline, with the stability of trading below the previously broken support-into-resistance level at 1.0500 price, in addition to the negative pressure coming from the simple moving averages that continue their negative pressure the price from above.

The daily trend is still bearish, but we find that the RSI is trying to obtain positive signs on the short time frames, which may increase the possibility of a slight bullish bias that aims to retest 1.0460 before falling again.

Note: The slight bullish bias does not contradict the daily bearish trend, whose official targets are around 1.0320. It should be noted that breaking the mentioned level increases and accelerates the strength of the daily bearish trend, opening the door to visit 1.0240 as long as the price is intraday stable below 1.0500 and in general below 1.0580.

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: 1.0320	R1: 1.0500
S2: 1.0240	R2: 1.0610
S3: 1.0140	R3: 1.0680