The EUR/USD pair has faced strong resistances at the levels of 1.0671 because support had become resistance on December 15, 2022. So, the strong resistance has been already formed at the level of 1.0671 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.0671, the market will indicate a bearish opportunity below the new strong resistance level of 1.0671 (the level of 1.0671 coincides with a ratio of 78% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). The trend is probably changing soon.

A Moving Average (MA) is an indicator that shows the average value. Its function is to determine the general trend within a specific period of time.

The market is indicating a bearish opportunity below 1.0671 so it will be good to sell at 1.0600 with the first target of 1.0588. It will also call for a downtrend in order to continue towards 1.0509.

The daily strong support is seen at 1.0509. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.0737.

As a rule, the market is highly volatile if the previous day has huge volatility. But if the last week range was very large, then next week range will be probably moved between the weekly pivot point and resistance 1 or support 1. Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.

Trading recommendations :

The trend is still bearish as long as the price of 1.0671 is not broken. Thereupon, it would be wise to sell below the price of at 1.0671 with the primary target at 1.0588. Then, the EUR/USD pair will continue towards the second target at 1.0509. We should see the pair will fall towards the next target of 1.0455. The pair will move downwards continuing the development of the bearish trend to the level 1.0438 in coming days.

Conclusion :

The EUR/USD pair increased within a downtrend channel from the prices of 1.0671 and 1.0438 since a week. The bulls must break through 1.0737 in order to resume the uptrend.