Short-term important resistance at 1.1370 (Fibonacci expansion 161.8%) held successfully, which is a sign that buying EUR/USD at this stage looks risky. In our opinion, EUR/USD completed the upward correction (expanded flat ABC), which is a sign that sellers may continue with new selling. There is also a hidden bearish divergence on the MACD oscillator, which is another sign of weakness. Breakout of the intraday support level at 1.1318 would confirm downward movement.
R3: 1.1372
R2: 1.1396
R1: 1.1420
Pivot: 1.1348
S1: 1.1324
S2: 1.1300
S3: 1.1275
Trading recommendation: We are shot EUR from 1.1327 with stop placed at 1.1375. Profit target is set at the price of 1.1235.
