The direction of the EUR/USD pair into the close at the price of 1.0500 is likely to be determined by trader reaction to 1.0581 and 1.0500.
After a close below the price of 1.0581, the EUR/USD pair moved into a bearish area. the EUR/USD pair extended decline and traded below the 1.0581 level.
If there is a downside break below 1.0581, the price might revisit the 1.0471 support. The next key support is near the 1.0471 level, below which the price may perhaps decline to USD 1.0400.
It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.0581 and 1.0400 in coming hours.
Furthermore, the price has been set below the strong resistance at the levels of 1.0581 and 1.0649, which coincides with the 23.6% and 38.2% Fibonacci retracement level respectively.
Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.0581 and 1.0649.
Thereupon, the price spot of 1.0581 and 1.0649 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective, in order to indicate a bearish opportunity below 1.0581.
If the EUR/USD pair fails to break through the support level of 1.0471 this week, the market will decline further to 1.0400.
The pair is expected to drop lower towards at least 1.0360 with a view to test the weekly support 3.
However, the price spot of 1.0649 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.0649 is not breached.