The EUR/USD pair continues to trend lower and extend continued recovery from a lower base at 1.0874. The EUR/USD pair will remain with bears while the action holds below key resistance level at 1.0893, but caution if the price approaches this level, as break higher would sideline bears on completion of daily failure swing pattern.
Today, we note that the market opens below the level of 1.0893. Please, note that the resistance stands at the levels of 1.0893 and 1.0928 in the M30 time frame.
In the longer term, the strong resistance at 1.0893 (- high, see also the long-term declining trendline since last week peak) continues to represent a major hurdle.
Therefore, right now the first descending impulse is forming the first one; the market is being corrected from the area of 1.0893 and 1.0928 this week.
In our opinion, the EUR/USD pair may grow up to test 1.0893 from below and then form the second descending impulse with a target at 1.0837 to test the daily support (weekly low -last bearish wave).
If the trend is able to close below the level of 1.0893, the price will fall into the bearish market in order to go further towards the strong support at 1.0837 and 1.0808 to test them again.
Furthermore, the level of 1.0837 will form a double bottom which represents the major support level this week. In the the daily time frame, the pair will probably go down because a downward trend is still strong and the RSI indicator is still signaling that the trend is downward.
Conclusion
The depicted resistance level of 1.0893 acted as an important key level offering a valid sell entry. So, sell below the 1.0893 level with the targets of 1.0837, 1.0808, and 1.0780. Conversely, stop loss should be placed above the high reached near the second resistance (1.0929).