Overview:
- The EUR/USD pair dropped from the level of 1.1033 to 1.0950, which coincides with a ratio of 38.2 % Fibonacci and the double bottom respectively on the H1 chart. Today, resistance is seen at the levels of 1.1033 and 1.1000. So, we expect the price to set below the strong resistance at the levels of 1.1033; because the price is in a bearish channel now. The EUR/USD pair will continue to move downwards from the areas of 1.1033 in coming hours. Amid the previous events, the price is still moving between the levels of 1.1033 and 1.0950. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1033. Hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.1033 to test it again. The level of 1.1033 will form a double bottom today. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.0950, the market will decline further to 1.0900 (daily support 2). On the other hand, if the price closes above the strong resistance of 1.1033, the best location for a stop loss order is seen above 1.1075. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1033.
