The first note on the euro dollar pair and in the Forex market in general, is the decrease in volatility in trading last week, as it averaged 127 points in the last 5 trading days, compared to 177 points average 20 days, and last Friday the pair moved only 90 points.
Weaker volatility, which means slower moving speed, so please pay attention to these points in managing trades
On the daily chart, we notice that the price stopped last week at the level of support at 1,0776, which is the bottom that formed in the middle of last month.
In the 1 h chart, the price is moving in a descending (narrow) channel, before the American opening, the price returned and tested the support level 1,0776 before rebounding again. The trading is now limited between the upper bound of the descending channel and this support level.
I believe that the price will correct the descending wave and breach the resistance level 1,0825, and if this scenario is confirmed, the next target will be the 23.6% Fibonacci correction at 1,1.863 then
Fibonacci retracement of 38.2% at 1,0917, which is also the level of D.
Former uncle.
Between 1,0917- 1,0943 there is a strong resistance area, where there is also the moving average 200 h, the falling trend line from the top 1,1480.
If this scenario fails and the daily closing is below the 1.0776 support level, we will see a further drop of 1,0652.
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