Overview:
The EUR/USD pair continues to move downwards from the level of 1.1239, which represents the double top in the H4 chart.
Yesterday, the pair dropped from the level of 1.1173 to the bottom around 1.1080.
Today, the first resistance level is seen at 1.1173 followed by 1.1239, while daily support is seen at the levels of 1.1066 and 1.0992.
According to the previous events, the EUR/USD pair is still trapping between the levels of 1.1132 and 1.0992.
Hence, we expect a range of 140 pips in coming hours.
The first resistance stands at 1.1132.
If the EUR/USD pair fails to break through the resistance level of 1.1132, the market will decline further to 1.1066. 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 1.0992 in order to test the second support (1.0992).
On the contrary, if a breakout takes place at the resistance level of 1.1239 (the double top), then this scenario may become invalidated.
