Overview:
- The EUR/USD pair continues to move downwards from the level of 1.0741, which represents the double top on the H1 chart. Last week, the pair dropped from the level of 1.0741 to the bottom around 1.0568 to close at the point of 1.0630. Today, the first resistance level is seen at 1.0652 followed by 1.0741, while daily support is seen at the levels of 1.0564 and 1.0493. According to the previous events, the EUR/USD pair is still moving between the levels of 1.0741 and 1.0500. Hence, we expect a range of 241 pips in coming days. The first resistance stands at 1.0654, for that if the EUR/USD pair fails to break through the resistance level of 1.0654, the market will decline further to 1.0564. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend reversal signs. The pair is expected to drop lower towards at least 1.0500 in order to test the second support (1.0493). On the contrary, if a breakout takes place at the resistance level of 1.0741 (the double top), then this scenario may become invalidated.
