Overview:
- The USD/EUR pair fell sharply from the level of 1.0938 towards 1.0856. Now, the price is set at 1.0888. The resistance is seen at the level of 1.0938 and 1.0989. Moreover, the price area of 1.0938 and 1.0989 remains a significant resistance zone.
Therefore, there is a possibility that the USD/EUR pair will move downside and the structure of a fall does not look corrective. 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.
Thus, amid the previous events, the price is still moving between the levels of 1.0938 and 1.0856. If the USD/EUR pair fails to break through the resistance level of 1.0938, the market will decline further to 1.0856 as as the first target.
This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0822 so as to test the daily support 2. Also, it should notice that the third support is seen at the level of 1.0790. On the contrary, if a breakout takes place at the resistance level of 1.0989, then this scenario may become invalidated.
The material has been provided by InstaForex Company – www.instaforex.com
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