Overview :
The direction of the EUR/USD pair into the close this week is likely to be determined by trader reaction to 1.0493 and 1.0401.
The EUR/USD pair climbed above the level of 1.0401 before it started a downside correction.
It broke a fateful bullish trend line with support near 1.0493 on the one-hour chart.
Right now, the EUR/USD pair settled below the key 1.0493 resistance.
So, it is at a risk of a downside break below 1.0493. According to previous events, the EUR/USD pair has still moving between the level of 1.0493 and the 1.0401 level (those levels coincided with the Fibonacci retracement levels 23.6% and double bottom respectively).
If this move creates enough late session downside momentum then look for a wave into 1.0401, followed closely by 1.0360.
The EUR/USD pair settled below the 1.0493 resistance zone, opening the doors for more downsides in the near term. Similarly, The EUR/USD pair could dive if it breaks the 1.0401 support.
Today, the first resistance level is seen at 1.0493 followed by 1.0548, while daily support 1 is seen at 1.0401.
Furthermore, the moving average (100) starts signaling a downward trend. Therefore, the market is indicating a bearish opportunity below 1.0493 or 1.0548.
It will be good to sell at 1.0493 with the first target of 1.0401. It will also call for a downtrend in order to continue towards 1.0360 in coming hours.