The EUR/USD pair hit the weekly pivot point and resistance 1, because of the series of relatively equal highs and equal lows. But, the pair has dropped down in order to bottom at the point of 1.0808. Hence, the major support was already set at the level of 1.0669.
Moreover, the double bottom is also coinciding with the major support this week. Additionally, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100.
The EUR/USD pair has broken support at the level of 1.0669 which acts as a resistance now.
According to the previous events, the EUR/USD pair is still moving between the levels of 1.0808 and 1.0669.
Therefore, we expect a range of 139 pips in coming two days. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
The price spot of 1.0755 remains a significant resistance zone. Consequently, there is a possibility that the EUR/USD pair will move downside. The structure of a fall does not look corrective, in order to indicate a bearish opportunity below 1.0755, sell below 1.0755 with the first target at 1.0669.
Besides, the weekly support 1 is seen at the level of 1.0669. However, traders should watch for any sign of a bullish rejection that occurs around 1.0808. The level of 1.0808 coincides with 38.2% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 38.2% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.
Signal:
The major resistance can be found at 1.0808 providing a clear signal to sell with a target seen at 1.0808. If the trend breaks the minor support at 1.0669, the pair will move downwards continuing the bearish trend development to the level of 1.0630 in order to test the daily support 2.