As expected, the EUR/USD pair continues to move downwards from the zone of 1.1047 and 1.1019. which coincides with a ratio of 61.8% Fibonacci and 50% on the hourly chart.
The pair dropped from the level of 1.1047 to 1.0957, but the trend has rebounded from the support of 1.0957 to closed at1.1010. Today, resistance is seen at the levels of 0.9738 and 0.9792.
So, we expect the price to set below the strong resistance at the levels of 1.1047 and 1.1019; because the price is in a bearish channel now.
The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.1019 with the first target at 1.0957 and further to 1.0901 in order to test the daily support.
If the EUR/USD pair is able to break out the daily support at 1.0901, the market will decline further to 1.0848 to approach support 3 in coming days.
However, the price spot of 1.1047 and 1.1019 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.1047 is not breached.
The level f 1.1047 has been rejected for four times confirming uptrend veracity.
At the same time, if a breakout happens at the resistance levels of 1.1047 and 1.1085 (R3), then this scenario may be invalidated. But in overall, we still prefer the bearish scenario.
