The euro hovers around the pivotal levels 1/6/2022

Amid quiet trading, the single European currency maintained its positive stability within the expected bullish path during the previous analysis, with a gradual rise towards the required target of 1.0800, recording the highest during the last session’s trading of 1.0787.

Technically, today, the current movements of the pair are witnessing a bearish tendency as a result of the intraday overbought and the gradual loss of the bullish momentum stochastic. We also find that the intraday trades returned to stability below the 1.0770 resistance level represented by the 50.0% Fibonacci correction. These factors support the possibility of a bearish bias in the coming hours. On the other hand, the pair is still stable above the simple moving average 50, supporting the resumption of the rise again.

Despite the conflicting technical signals, we tend to the possibility of a bearish bias that targets retesting 1.0700 first target and extending towards 1.0670 Fibonacci retracements of 61.80%.

Note: The slight bearish bias does not contradict the daily bullish trend, provided that we witness the price consolidation again above 1.0760, 50.0% correction, because this enhances the chances of rising again towards 1.0800 and 1.0840, respectively.

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: 1.0670	R1: 1.0770
S2: 1.0625	R2: 1.0830
S3: 1.0570	R3: 1.0875