Overview:
- The EUR/USD pair faced resistance at the level of 1.1198, while minor resistance is seen at 1.1176. Support is found at the levels of 1.1143 and 1.1111. Besides, it should be noted that a daily pivot point has already been set at the level of 1.1198. Equally important, the EUR/USD pair is still moving around the key level at 1.1198, which represents a daily pivot in the H1 time frame at the moment. Last week, the EUR/USD pair continued moving downwards from the level of 1.1200. The pair fell from the level of 1.1200, which coincides with the double top, to the bottom around 1.1111. In consequence, the EUR/USD pair broke support, which turned into strong resistance at the level of 1.1198. The level of 1.1198 is expected to act as the major resistance today. From this point, we expect the EUR/USD pair to continue moving in the bearish trend from the resistance level of 1.1198 towards the target level of 1.1143 so as to test the double bottom. If the pair succeeds in passing through the level of 1.1143, the market will indicate the bearish opportunity below the level of 1.1143 in order to reach the second target at 1.1111. On the other hand, if a breakout happens at the support level of 1.120, then this scenario may be invalidated.
Daily technical levels:
- R3: 1.1393
- R2: 1.1339
- R1: 1.1252
- PP: 1.1198
- S1: 1.1111
- S2: 1.1057
- S3: 1.0970
