The Euro Continues Its Gradual Decline 26/1/2022

The single European currency declined significantly against the US dollar, within the expected bearish context during the previous analysis, heading towards the first price target, 1.1270.

Technically, the Euro tried to benefit from the 1.1270 support floor, which forced the intraday movements to a limited upward bias to retest 1.1300. However, by looking at the 240-minute chart, we notice that the stochastic has gradually started to lose the bullish momentum, in addition to continuing to move below the simple moving averages.

Therefore, with intraday trading remaining below the previously broken support 1.1330 and, in general, below the main resistance level 1.1375, this may increase the possibility of resuming the decline, knowing that the fall below 1.1270 facilitates the task required to visit 1.1220 and 1.1150, respectively as long as the price is stable below 1.1375.

Rising above 1.1375 might stop the possible bearish scenario and restore the Euro to recover to retest 1.1410, and it may extend later to visit 1.1465.

Note: Fed statement is due today and may cause high volatility.

Note: CFD trading involves risks; all scenarios may occur.

S1: 1.1270	R1: 1.1340
S2: 1.1220	R2: 1.1375
S3: 1.1150	R3: 1.1410