Overview :
- The EUR/USD pair is in the short term.
- The price of the EUR/USD pair is going to turn to bearish sentiment from the level of 1.1840. Moreover, it should be noted that the level of 1.1863 is representing a double top today. Accordingly, it will be a good sign to sell below the double top at 1.1863 with the first target of 1.1755. Then, if the price breaks the level of 1.1755, it will call for a downtrend market in order to continue its bearish movement towards 1.1710 (to form a new double bottom point at this area). Equally important, the resistance would set at the 1.1840 level. Additionally, it should be noted that today's range will be about 85 pips (1.1840 - 1.1755) at least. However, the stop loss should be placed below the double top at the price of 1.1893, so the stop loss should be set in 30 pips since the risk of 30 pips could make profit of 60 pips.
Observations :
- The EUR/USD pair called for the bearish market from the price of 1.1840 towards the level of 1.1796; but the EUR/USD pair recovered again to start going upwards close to 1.1805 yesterday.
- The support will set at the level of 1.1755, but the new double bottom is going to set at 1.1710 today.
- The minor resistance has set at 1.1840; and the price of 1.1863 is representing strong resistance.
- We expect volatility of more than 209 pips today. As a rule, the market is highly volatile if the last day had huge volatility.
- If the trend is of a downside character, then the strength of the currency will be defined as following: EUR is in a downtrend and USD is in an uptrend.
The material has been provided by InstaForex Company - www.instaforex.com
