The EUR/USD pair dropped from the level of 1.0749 to the bottom around 1.0640. But the pair has rebounded from the bottom of 1.0640 to close at 1.0656.
Today, the first support level is seen at 1.0638, and the price is moving in a bearish channel now.
Furthermore, the price has been set below the strong resistance at the level of 1.0685, which coincides with the 78% Fibonacci retracement level.
This resistance has been rejected several times confirming the downtrend. Additionally, the RSI starts signaling a downward trend.
As a result, if the EUR/USD pair is able to break out the first support at 1.0638, the market will decline further to 1.0604 in order to test the weekly support 2.
In the H1 time frame, the pair will probably go down because the downtrend is still strong. Consequently, the market is likely to show signs of a bearish trend.
So, it will be good to sell below the level of 1.0638 with the first target at 1.0604 and further to 1.0570.
In case a reversal takes place and the EUR/USD pair breaks through the support level of 1.0570, a further decline to 1.0527 can occur. It would indicate a bearish market.
At the same time, the breakdown of 1.0749 will allow the pair to go further up in coming hours. However, the 1.0527 mark remains a significant support zone. Thus, the trend will probably rebound again from 1.0459 level as long as this level is not breached.
