FX.co ★ Technical analysis of EUR/USD for May 9, 2016

Overview:

• The EUR/USD pair has broken support at the level of 1.1468 which acts as a resistance this week. According to the previous events, the EUR/USD pair is still moving between the levels of 1.1468 and 1.1320. Therefore, we expect a range of 148 pips in coming two days. 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. For this reason, the price spot of 1.1468 remains a significant resistance zone. 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 take a bearish opportunity below 1.1468, sell below 1.1468 with the first target at 1.1355. Besides, the weekly support 1 is seen at the level of 1.1320. However, traders should watch for any sign of a bullish rejection that occurs around 1.1473. The level of 1.1473 coincides with 38.2% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 38.2% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.

Intraday technical levels:

• R3: 1.1780
• R2: 1.1698
• R1: 1.1550
• PP: 1.1468
• S1: 1.1320
• S2: 1.1238
• S3: 1.1090