Last week, the EUR/USD pair climbed from 1.0564 to 1.0697 and closed at the price of 1.0689. But, this week we note that the market opens below the level of 1.0697.
Please, note that the resistance stands at the levels of 1.0697 and 1.0750 in the daily time frame. In the longer term, the strong resistance at 1.0750 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 1.0697/1.0750 this week.
In our opinion, the EUR/USD pair may grow up to test 1.0697 from below and then form the second descending impulse with a target at 1.0620 to test the first support .
Today, if the trend is able to close below the level of 1.0620, the price will fall into the bearish market in order to go further towards the strong support at 1.0564 to test them again. Th level of 1.0564 is coincided with the weekly pivot point on the hourly chart.
Furthermore, the level of 1.0482 will form a double bottom which represents the major support level this week.
At the same 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 1.0697 acted as an important key level offering a valid sell entry. So, sell below the 1.0697 level with the targets of 1.0620, 1.0564, and 1.0523 in coming hours. Conversely, stop loss should be placed above the high reached near the second resistance (1.0750).