The EUR/USD pair is generally one of the more reactive pairs to shifting sentiment in markets: so far this week it shows a clear sign of another imminent leg down from the levels of 1.0943, 1.0964 and 1.0985.
The slow RSI's downward crossover within oversold would usually signal a retracement and pause of the downtrend. A move back towards the recent technical reference around the spot of 1.0943-1.0964.
The EUR/USD pair followed a bearish path below the support levels of 1.0943 and 1.0964. The US Dollar price extended gains and tested the 1.0916 support. But it should be noted that the EUR/USD pair surged to 1.0943 before correcting lower.
The currency of Euro started a major decline after it failed to clear 1.0943 against the US Dollar. The EUR/USD pair traded below the 1.0943 support to enter a bearish area.
Looking at the M30 chart, the pair settled below the 1.0943 level, the 100 simple moving average (red trend, M30), and the 50 simple moving average (blue trend, M30).
The EUR/USD pair is continuing in a bearish market from the resistance level of 1.0943. Also, it should be noticed that the current price is in a bearish channel since a long time.
Consequently, the first resistance sets at the level of 1.0943. Hence, the market is likely to show signs of a bearish trend around the zone of 1.0943/1.0964.
In other words, sell orders are recommended below the first resistance of (1.0943) with the first target at the level of 1.0874.
Furthermore, if the trend is able to break through the first support of 1.0874. As a result, the pair will climb towards the double bottom (1.0874) to test it - then try to reach the second support level of 1.0833.
On the other hand, stop loss should always be in account, thus, it must set the stop loss above the second resistance of 1.0985.