Overview:

• The EUR/USD pair is trading below its pivot point which sets at the level of 1.2690. It is likely to trade in a lower range as far as it remains below its pivot point. Also, it might be noted that the ratio of 61.8% represents the same key level in H1 chart. Moreover, H1 chart is negative biased as RSI is turning bearish. Short position is recommended from the level of 1.2690 with the first target at 1.2615 in mind. A break of this target will move the pair further downwards towards 1.2568 in order to test the double bottom. Furthermore, the double bottom will act as strong support because it is the last bearish wave since the 30th of September 2014. In case the price moves in the contrary direction, it bounces back from the support level, and then moves above its first support around the 1.2620 level, it is most favourably expected to move further to the upside. In that scenario, a long position is recommended from the double bottom with the first target at 1.2620 and the second target at 1.2665.