The Euro May Face Some Negative Pressure 7/2/2022

The movements of the European single currency witnessed an upward bias during last week’s trading, surpassing the target at 1.1380, to record its highest level at 1.1483.

Technically, and by looking at the 4-hour chart, we notice the signs of negativity that started appearing on the stochastic as a result of entering into overbought areas. We also notice that the 14-day RSI sends negative signals on the short frames.

With the return of the intraday trading stability below the resistance level of 1.1475/1.1465, there may be a possibility of a bearish bias in the coming hours, and this may target a retest of the previous breached resistance level at 1.1380, located at the 61.80% Fibonacci correction, which is now turned into a support level. However, it should be noted that trading Price stability below the target level may to touch 1.1320 as long as the price is stable below the resistance level of 1.1475.

Rising again above 1.1475 may postpone the above-suggested scenario, and we may witness a resumption of the bullish bias to visit 1.1510, and it may extend later towards 1.1570, 50.0% correction.

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: 1.1400	R1: 1.1475
S2: 1.1365	R2: 1.1510
S3: 1.1320	R3: 1.1550