Technical analysis of EUR/USD for June 07, 2022

Overview :

The trend of EUR/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability.

Amid the previous events, the price is still moving between the levels of 1.0634 and 1.0732.

Also, the daily resistance and support are seen at the levels of 1.0732 and 1.0634 respectively.

Therefore, it is recommended to be cautious while placing orders in this area.

So, we need to wait until the sideways channel has completed. Yesterday, the market moved from its bottom at 1.0634 and it continued to rise towards the top of 1.0711.

Today, in the one-hour chart, the current rise will remain within a framework of correction.

However, if the pair fails to pass through the level of 1.0732, the market will indicate a bearish opportunity below the strong resistance level of 1.0787 (the level of 1.0787 coincides with the double top too).

Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.0787 with the first target at 1.0634.

If the trend breaks the support level of 1.0634, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.0598 in order to test the daily support 2 (horizontal green line).

This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0598 with a view to test the daily support 2.