Overview:
As expected, the EUR/USD pair continues to move downwards from the level of 1.0618. Yesterday, the pair dropped from the level of 1.0618 to the bottom around 1.0514.
Today, the first resistance level is seen at 1.0568 followed by 1.0618, while daily support 1 is seen at 1.0449.
According to the previous events, the EUR/USD pair is still moving between the levels of 1.0618 and 1.0449; for that we expect a range of 169 pips (1.0618 - 1.0449).
Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market.
If the EUR/USD pair fails to break through the resistance level of 1.0618 , the market will decline further to 1.0449.
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 1.0345 with a view to test the daily bottom .
On the contrary, if a breakout takes place at the resistance level of 1.0618 (the double top), then this scenario may become invalidated.