The weekly pivot sets at the point of 1.1003 and the trend is still moving above it.
The EUR/USD pair dropped from the level of 1.1076 to the bottom around 1.0910. But the pair has rebounded from the bottom of 1.0910 to close at 1.0950. Today, the first support level is seen at 1.0910, and the price is moving in a bearish channel now.
Furthermore, the price has been set below the strong resistance at the level of 1.1013, which coincides with the 61.8% Fibonacci retracement level.
On 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 1.1076 (major resistance), the market will indicate a bearish opportunity below the strong resistance level of 1.1013. This resistance (1.1013) has been rejected several times confirming the downtrend.
The US dollar's strong gains against the Euro have continued today ahead of the sturdy news. The common currency reached a high of more than three week earlier this morning. This technical analysis of EURUSD looks at the one-hour chart.
The highest price that EUR/USD reached for that period was 1.1076 (last bullish wave - top). The lowest price that the EUR/USD pair reached during that period was 1.0950 (right now). Thus, the EUR/USD pair settled below 1.0950 and is testing the support level at 1.0910.
RSI and Moving averages continue to give a very strong sell signal with all of the 50 and 100 EMAs successively above slower lines and below the price. The 50 EMA has extended further below the 100 this week. Support from MAs comes initially from the value zone between the 50 and 100 EMAs. Industriously,
Euro Is Losing ground against U.S. Dollar around -85 pips. Additionally, the RSI starts signaling a downward trend.
As a result, if the EUR/USD pair is able to break out the first support at 1.0910, the market will decline further to 1.0850 in order to test the weekly support 2. In the H1 time frame, the pair will probably go down because the downtrend is still strong.
Consequently, the market is likely to show signs of a bearish trend. Since there is nothing new in this market, it is not bullish yet. So, it will be good to sell below the level of 1.1013 with the first target at 1.0910 and further to 1.0850.
At the same time, the breakdown of 1.0500 will allow the pair to go further up to the levels of 1.1013 in order to retest the weekly top.