The euro may witness a temporary recovery 25/4/2022

The single European currency continues to lose against the strength of the US dollar within the expected bearish technical outlook during the previous analysis, explaining that we are waiting for confirmation of breaking 1.0800 to visit 1.0750 as a first target settled a low at 1.0770.

Technically, and by looking at the 4-hour chart, we notice that the euro is trying to build on the 1.0760 support level, we notice the attempts of the stochastic indicator to gain some momentum, and that contradicts the continuation of the negative pressure coming from the 50-day moving average, in addition to the stability of trading below 1.0860.

Despite the conflicting technical signals, we believe that there is a possibility of a temporary bullish bias that targets a retest of 1.0860/1.0850 before descending again.

Note: the temporary bullish bias does not contradict the general bearish trend, with official targets around 1.0680 once 1.0760 is broken.

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: 1.0795	R1: 1.0910
S2: 1.0750	R2: 1.0980
S3: 1.0680	R3: 1.1020