The EUR/USD pair has broken support at the level of 1.0567 which acts as a resistance now. According to the previous events, the EUR/USD pair is still moving between the levels of 1.0567 and 1.0360. Therefore, we expect a range of 207 pips in coming two days or three.
The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Hence, the price spot of 1.0567 remains a significant resistance zone.
Consequently, there is a possibility that the EUR/USD pair will move downside. The structure of a fall does not look corrective.
In order to indicate a bearish opportunity below 1.0567, sell below 1.0567 with the first target at 1.0458. Besides, the weekly support 2 is seen at the level of 1.0360.
If the pair fails to pass through the level of 1.0458, the market will indicate a bearish opportunity below the level of 1.0458 . So, the market will decline further to 0.6604 in order to return to the daily bottom point (1.0360 - S2).
However, traders should watch for any sign of a bullish rejection that occurs around 1.0616. The level of 1.0616 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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