The EUR/USD pair has broken support at the level of 1.2116 which acts as a resistance now.
According to the previous events, the EUR/USD pair is still moving between the levels of 1.2116 and 1.2054.
Therefore, we expect a range of 120 - 150 pips in coming hours. 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 1.2116 - 1.2150 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 1.2116, sell below 1.2116 with the first target at 1.2072.
Besides, the weekly support 1 is seen at the level of 1.2072.
Since the trend is below the 78% Fibonacci level (1.2116), the market is still in a downtrend. Overall, we still prefer the bearish scenario.
In overall, we still prefer the bearish scenario as long as the price is below the level of 1.2116. Furthermore, if the EUR/USD pair is able to break out the bottom at 1.2072, the market will decline further to 1.2031 (daily support 2).
However, traders should watch for any sign of a bullish rejection that occurs around 1.2031. The level of 1.2031 coincides with 23.6% of Fibonacci, which is expected to act as a major resistance today.