Recently, the EUR/USD pair has been trading downwards. As I expected, the price tested the level of 1.2201. According to the 30M time – frame, I found a broken 3-day upward channel, which is a sign that buying looks risky and that sellers are in control. I also found a hidden bearish divergence on the moving average oscillator in the background, which is another sign of weakness. I have placed Fibonacci retracement to find potential downward targets. I got FR 38.2% at the price of 1.2158, FR 50% at the price of 1.2115 and FR 61.8% at the price of 1.2075.
Resistance levels:
R1: 1.2310
R2: 1.2359
R3: 1.2420
Support levels:
S1: 1.2203
S2: 1.2140
S3: 1.2095
Trading recommendations for today: watch for potential selling opportunities.
