FX.co ★ Technical analysis of EUR/USD for February 08, 2021

• If the EUR/USD pair fails to break through the resistance level of 1.2038 today, the market will decline further to 1.1900. The pair is expected to drop lower towards at least 1.1860 with a view to test the support 2. Also, it should be noted that the weekly pivot point will act as minor resistance today. However, if a breakout happens at the resistance level of 1.2093, then this scenario may be invalidated.

Overview :

• The EUR/USD pair has dropped sharply from the spot of 1.2038 - 1.2005 towards 1.1950. Now, the price is set below the price of 1.2038 to act as a daily pivot point. It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.2038 and 1.1860 in coming hours. Furthermore, the price has traded below the strong resistance at the levels of 1.2038 and 1.2064, which coincides with the 38.2% and 50% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.2038 - 1.2005. The price spot of 1.2038 - 1.2005 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In addition to, the RSI is still signaling that the trend is downward as it remains strong below the moving average (100). This suggests the pair will probably go downig coming hours. Accordingly, the market is likely to show signs of a bearish trend. In other words, sell orders are recommended below the region of .2038 - 1.2005 with the first target at the level of 1.1900. If the trend is be able to break the first support at the level of 1.1900, then the market will continue falling towards the weekly support 2 at 1.1860.