This morning the price of the EUR/USD pair has been plummeting with strong bullish momentum, resulting in a break below the 50-day and 100-day moving averages lines on the daily time frame, indicating that the bears are presently in control of the market.
The US Dollar pair started a major fall after it failed to clear 1.0217 (R1) against the Euro. The EUR/USD pair traded below the 1.0217 resistance to enter a bearish zone.
If the price fails to break below the stated resistance level (1.0217), the most probable scenario is a drop towards the 1.0123 critical ask zone.
Also, must note that the daily pivot has already set at the price of 1.0217 (minor resistance). Today, the EUR/USD pair has broken support at the level of 1.0123 which acts as support now.
The pair has already formed minor support at 1.0123. The strong support is seen at the level of 1.0123 because it represents the weekly support 1.
Equally important, the RSI and the moving average (100) are still calling for a downtrend. Therefore, the market indicates a bearish opportunity at the level of 1.0217 in the H1 chart.
Also, if the trend is buoyant, then the currency pair strength will be defined as following: EUR is in an uptrend and USD is in a downtrend.
Sell below the minor resistance of 1.0217 with the first target at 1.0123 (this price is coinciding with the ratio of 00% Fibonacci - double bottom), and continue towards 1.0100 (the weekly resistance 2).
From this point, the pair is likely to begin a descending movement to the point of 1.0100 and further to the level of 1.0050.
The level of 1.0050 will act as strong support and the double bottom is already set at the point of 1.0123.
This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.0050 in order to test the second support (1.0050).
On the other hand, if the EUR/USD pair fails to break through the first support of 1.0123 today, the market will move upwards continuing the development of the bullish trend to the level 1.0369 (double top).
