Overview:
- The EUR/USD pair has faced strong resistances at the levels of 1.0560 because support became resistance last week. So, the strong resistance has been already formed at the level of 1.0560 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.0560, the market will indicate a bearish opportunity below the new strong resistance level of 1.0560 (level of 1.0560 coincides with a ratio of 38.2% Fibonacci). Therefore, there is a possibility that the EUR/USD pair will move downwards below the level of 1.0560. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.0560. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 1.0560, for that it will be good to sell at 1.0560 with the first target of 1.0426. It will also call for a downtrend so as to continue towards 1.0366 (double bottom). The daily strong resistance is seen at 1.0560. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.0619.
