The Euro is Testing Resistance And Positivity Looking For Confirmation

The single European currency continues to try to rise against the US dollar, recording its highest level during the previous session at 1.1280.

Technically speaking, we see the Euro found it difficult to confirm the breach of the 1.2175 resistance level represented by the 23.60% Fibonacci correction as shown on the 4-hour chart, and with a closer look, we find the 50-day moving average still provides a positive motive in addition to the stability trading above 1.2110.

We will maintain our positive outlook, knowing that easily breaching 1.2175 is a required task to visit 1.2205, and then 1.2235 preliminary targets.

On the downside, the confirmation of a breach of 1.2105 will delay the chances of the bullish scenario, and we may witness a bearish tendency targeting a re-test of the support level of 1.2065 and the correction of 38.20%.

Note: Stochastic is trading around overbought areas. In general, the trend is to the upside as long as trading is stable above 1.2065.

S1: 1.2110	R1: 1.2175
S2: 1.2065	R2: 1.2205
S3: 1.2020	R3: 1.2235