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The euro failed to maintain its recent gains against the US dollar after its inability to stabilize above the resistance level of 1.0500, which forced it to break the psychological support level of 1.0500. It is currently trading around the support level of 1.0460.
Technically, and with careful consideration of the 4-hour chart, the 50-day simple moving average returned to pressure the price from above and converges around the resistance level of 1.0550, 23.60% Fibonacci correction, and adds more strength to it, in addition to the negative signals coming from the RSI on short time frames.
With intraday trading stabilizing below 1.0500 and below 1.0550, the bearish bias is most preferred, targeting 1.0400/1.0410 first target, considering that the decline below 1.0400 facilitates the task required to visit 1.0375 next official station as long as the price is stable below 1.0550.
Breaking above and rising again above 1.0550 is a catalyst that might enhance the chances of touching 1.0610.
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: 1.0410 | R1: 1.0500 |
| S2: 1.0375 | R2: 1.0550 |
| S3: 1.0315 | R3: 1.0620 |
