Overview:
The EUR/USD pair opened below the weekly pivot point (1.1440). It continued to move downwards from the level of 1.1440 to the bottom around 1.1378. Today, the first resistance level is seen at 1.1471 followed by 1.1516, while daily support 1 is seen at 1.1371.
Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.1440. So it will be good to sell at 1.1440 with the first target of 1.1371. It will also call for a downtrend in order to continue towards 1.1308.
The strong daily support is seen at the 1.1371 level, which represents the double bottom on the H1 chart. According to the previous events, we expect the EUR/USD pair to trade between 1.1440 and 1.1371 in coming hours. The price area of 1.1471 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.1471 is not broken. On the contrary, in case a reversal takes place and the EUR/USD pair breaks through the resistance level of 1.1471, then a stop loss should be placed at 1.1503.
Comment:
- The daily pivot is seen at the level of 1.1440.
- Major resistance is see at the level of 1.1471.
- The market is still in a downtrend. We still prefer the bearish scenario.
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