Overview:
- The market opened below the weekly resistance 1 (1.0656). It continued to move downwards from the level of 1.0622 to the bottom around 1.0514. Today, the first resistance level is seen at 1.0656 followed by 1.0723, while daily support 1 is seen at 1.0498 (weekly pivot).
The EUR/USD pair broke support which turned to strong resistance at 1.0656. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.0498) which is expected to act as major support today.
Amid the previous events, the EUR/USD pair is still moving between the levels of 1.0656 and 1.0498. Therefore, the major resistance can be found at 1.0656 providing a clear signal to sell with a target seen at 1.0498. If the trend breaks the weekly pivot point at 1.0498, the pair will move downwards continuing the bearish trend development to the level of 1.0373 in order to test the weekly support. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.0622-1.0656 this week.
However, the stop loss should be placed above the second resistance of 1.0723.
The material has been provided by InstaForex Company – www.instaforex.com
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