The dollar is again advancing today, while the euro weakens after the disappointing European PMI indices were published.
At the same time, EUR/USD is attempting to establish itself below the key medium-term levels of 1.0805 (200 EMA on the daily chart) and 1.0785 (50 EMA on the weekly chart), which it broke through last Friday.
Further decline in the pair would indicate its full return to the zone of long-term and medium-term bearish markets.
Technical indicators OsMA and Stochastic on the daily, weekly, and monthly charts are also in favor of sellers.
Thus, short positions are preferred. The best entry for them would be on a pullback to the zone of the mentioned key levels. However, under current conditions, entering short positions would be justified already after breaking today's intraday low and the 1.0740 level. The nearest downward targets are located at local support levels of 1.0700, 1.0650, 1.0600, and 1.0530.
In an alternative scenario, after breaking through resistance levels of 1.0805 and 1.0850 (144 EMA on the daily chart), EUR/USD will return to the zone of the medium-term bullish market and continue to rise within the upward channel on the weekly chart, with targets at important long-term resistance levels 1.1060 (200 EMA on the weekly chart) and 1.1090 (50 EMA on the monthly chart).
Their breakout, in turn, will confirm the resumption of the long-term upward trend with immediate targets near the resistance levels of 1.1275 (upper line of the upward channel on the weekly chart), 1.1300, and further, near the resistance level of 1.1600 (200 EMA on the monthly chart).
Rising above the 1.1600 mark will signal the return of EUR/USD to the zone of the global bullish market.
Support levels: 1.0700, 1.0650, 1.0600, 1.0530, 1.0500
Resistance levels: 1.0785, 1.0805, 1.0832, 1.0850, 1.0900, 1.0905, 1.0950, 1.1000, 1.1060, 1.1090, 1.1200, 1.1275, 1.1300, 1.1400, 1.1500, 1.1600