Overview :
- Pair : EUR/USD.
- Pivot : 1.2080.
- Prediction : Downtrend - bearish market.
The EUR/USD pair tries to rebound from the region of 1.2080 and 1.2101. The EUR/USD pair has recently managed to get below the daily pivot point at the 100 EMA at 1.2080 (38.2% of Fibonacci retracement levels).
The EUR/USD pair is only bearish while trading below the 1.2080 level, key support is found at the 1.2080 and 1.2101 levels on the one-hour chart.
At the same times frame, the EUR/USD pair touches down to 1.2012 level of support which formes a bottom.
Yesterday, the euro currency lastly fell to the support level of 1.2012, testing the level more firmly.
The EUR/USD pair continues to move downwards from the level of 1.2054. Yesterday, the pair dropped from the level of 1.2080 (this level of 1.2080 coincides with the double top, pivot point) to the bottom around 1.2012.
Today, the first resistance level is seen at 1.2080 followed by 1.2154 (the weekly pivot point), while daily support 1 is found at 1.1985.
The nearest resistance level for the EUR/USD pair is located near the 100 EMA at 1.2080. If the EUR/USD pair declines below this level, it will gain downside momentum and move towards the next support level at 1.1985.
The 100 EMA is located near 1.2080; for that the EUR/USD pair will likely get significant resistance at this level.
Amid the previous events, the pair is still in a downtrend, because the EUR/USD pair is trading in a bearish trend from the new resistance line of 1.2080ctowards the first support level at 1.1985in order to test it.
If the pair succeeds to pass through the level of 1.1985, the market will indicate a bearish opportunity below the level of 1.1960.
However, if a breakout happens at the resistance level of 1.2190, then this scenario may be invalidated.
Conclusion :
On the H1 chart. the level of 1.2080 coincides with 38.2% of Fibonacci, which is expected to act as minor support today. Since the trend is below the 38.2% Fibonacci level, the market is still in a downtrend.
Thus, the market is indicating a bearish opportunity below the above-mentioned resistance levels, for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside (1.2080).
The price spot of 1.2080 remains a significant resistance zone. Hence, the trend is still bearish as long as the level of 1.2080 is not breached.
Signal :
Current price sets at 1.2030.
If the EUR/USD pair is able to break out the bottom at 1.2012, the market will decline further to 1.1960 in order to test the daily support 2.
