Overview :
The EUR/USD pair is moving towards the nearest resistance level at 1.2175 while the U.S. dollar is losing ground against a broad basket of currencies. Currently price sets at 1.2110.
The EUR/USD pair is trying to get to the test of the nearest support level at 1.2080. If the EUR/USD pair manages to settle above this level (1.2080), it will head towards the next resistance at the recent highs at 1.2175 (double top, 100% of Fibonacci on H1 chart).
The minor range is 1.2080 to 1.2175. Its 61.8% level at 1.2080 is controlling the price action today.
The EUR/USD pair hit the daily pivot point and resistance at the levels of 1.2021 and 1.2080, because of the series of relatively equal highs and equal lows. But, the pair has dropped down in order to bottom at the point of 1.2109.
According to the previous events, the EUR/USD pair is still moving between the levels of 1.2080 and 1.2175; for that we expect a range of 95 pips (1.2175 - 1.2080). If the EUR/USD pair fails to break through the resistance level of 1.2175, the market will decline further to 1.2080.
Hence, the major support was already set at the level of 1.2109. Moreover, the double bottom is also coinciding with the major support this week.
Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100.
Therefore, it will be advantageous to buy above the support area of 1.2080 with the first target at 1.2175. From this point, if the pair closes above the weekly pivot point of 1.2175, the EUR/USD pair may resume it movement to 1.2220 to test the weekly resistance 2.
If the trend is able to breakout through the major resistance level of 1.2220. We should see the pair climbing towards the 3rd resistance (1.2262 ) to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 1.2021.
Forecast :
The market is indicating a bearish opportunity below 1.2080; for that it will be good to sell at 1.2080 with the first target of 1.2175. It will also call for an upntrend in order to continue towards 1.2220, then 1.2262. The daily strong support is seen at 1.2021. 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 1.2021.
