FX.co ★ Technical analysis of EUR/USD for August 16, 2022

The EUR/USD pair reverses from 1.0369 and drops to multi-day lows near 1.0171 - this price formed a bottom this morning in hourly chart time frame. Right now, the EUR/USD pair dropped further and bottomed at 1.0123, the lowest level since two weeks.

It then trimmed losses, rising to 1.0171. The move lower took place amid a stronger US dollar across the board. Probably, the main scenario is continued decline towards 1.0000 again (sentiment level).

Some fundamental news will impact on the EUR/USD pair in coming days because The euro has a flexible exchange rate, which is dependent on three factors : The European Central Bank's benchmark interest rate. Additionally, the debt levels of individual countries within the EU. Moreover, the strength of the European economy.

The EUR/USD pair has broken support at the level of 1.0217 (pivot) which acts as a resistance now. According to the previous events, the EUR/USD pair is still moving between the levels of 1.0261 and 1.0000.

Therefore, we expect a range of 200 pips in coming hours (before the end of session). 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.

Hence, the price spot of 1.0217 remains a significant resistance zone. Since the trend is below the 38.2% Fibonacci level (1.0217), the market is still in a downtrend.

Overall, we still prefer the bearish scenario. 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 1.0217, sell below 1.0217 with the first target at 1.0123. Besides, the weekly support 2 is seen at the level of 1.0100. However, traders should watch for any sign of a bullish rejection that occurs around 1.0000.