Overview:
The EUR/USD pair has dropped sharply from the level of 1.2337 towards 1.2180. The price which placed at 1.2337 is acting as a daily pivot point.
It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.2237 and 1.2133 in coming hours.
Furthermore, the price has set below the strong resistance at the levels of 1.2237 and 1.2279, which coincides with the 38.2% and 61.8% Fibonacci retracement level respectively.
Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.2237 and 1.2279.
Thereupon, the price spot of 1.2237 and 1.2279 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective.
For that the trend will indicate a bearish opportunity below 1.2237, sell below 1.2237 or 1.2279 with the first targets at 1.2133 (the double bottom is seen at 1.2133).
If the EUR/USD pair succeeds to break through the bottom level of 1.2133 today, the market will decline further to 1.2073. The pair is expected to drop lower towards at least 1.2033 with a view to test the weekly support 3.
However, the stop loss should be located above the level of 1.2349.
