Yesterday's movement of the pair helped us determine the trend on the hourly chart. Now we can see the beginning of a new phase of the pair’s movement - consolidation of the micro-trend through a correction to 1.1770 and a resumed rally from this point.
According to the H4 chart, the price is likely to consolidate and then continue its upward movement. However, the market is not yet ready to speed up its rally. Sellers believe in 1.1650, holding their positions at the level of 1.1800. This is a temporary phenomenon. Moreover, given that today is only Tuesday, the pair has every chance to rise to the level of 1.1900.
The levels of 1.1895 and 1.1795 act as resistance and support respectively. The formation of moving averages allows the pair to advance to 1.1895. Besides, this movement can be part of a correction of the medium-term decline. According to the D1 chart, the price is correcting towards the March downward wave.
According to the hourly chart, the level of 1.1785 looks more promising for opening positions. The slow moving averages are concentrated here. At the same time, the price is likely to test this level in order to gain liquidity and then rise above 1.1820.
Investor sentiment on the euro: bullish.
As for intraday trading, the pair is expected to gain ground to the level of 1.1870 or, as an alternative, decline to the level of 1.1770.
However, trading activity is likely to be subdued on Tuesday.
As for the fundamental background, some news sites mentioned the launch of the digital euro. However, I think that the virtual European currency will hardly be able to change the market and have a severe impact on the exchange rate in the long run.