FX.co ★ Technical analysis of EUR/USD for September 04, 2020

Let's examine at the one-hour chart. As expected the EUR/USD pair continues to move downwards from the areas of 1.1916 and 1.1886.

Yesterday, the pair dropped from the level of 1.1916 to 1.1821, which coincides with a ratio of 23.6% Fibonacci on the H1 chart.

Today, resistance is seen at the levels of 1.1886 and 1.1916. Consequently, we expect the price to set below the strong resistance at the levels of 1.1886 and 1.1916; because the price is in a bearish channel now.

Amid the previous events, the price is still moving between the levels of 1.1916 and 1.1762.

In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1916.

The instrument is declining along the lower line of moving average, the indicator cloud is expanding.

Furthermore, if the EUR/USD pair is able to break out the bottom at 1.1821, the market will decline further to 1.1762 (daily support 1).

The preservation of the downtrend is likely in the short term. RSI is in the negative area, very quickly reducing volumes, the signal line reversed downwards.

Moreover, the price will fall into a bearish trend in order to go further towards the strong support at 1.1762 to test it again. The level of 1.1762 will form a double bottom.

The third support has already set at the level of 1.1695 at the same time frame.

On the other hand, if the price closes above the strong resistance of 1.1916, the best location for a stop loss order is seen above 1.1956.