The EUR/USD pair continues to move downwards from the level of 1.0052. Yesterday, the pair dropped from the level of 1.0052 to the bottom around 0.9912.
But the pair has rebounded from the bottom of 0.9912 to close at 0.9947. Today, the first support level is seen at 0.9901, the price is moving in a bearish channel now.
Furthermore, the price has been set below the strong resistance at the level of 1.0052, which coincides with the 50% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a 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 0.9901, the market will decline further to 0.9850 in order to test the weekly support 2.
Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.0052 with the first target at 0.9901 and further to 0.9850.
In case a continuousion takes place and the EUR/USD pair breaks through the support level of 0.9850, a further decline to 0.9800 can occur which would indicate a bearish market. However, stop loss is to be placed above the level of 1.0088.
Forecast :
Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.0052 with the first target at 0.9901 so as to test the double bottom. If the trend breaks the double bottom level of 0.9901, the pair is likely to move downwards continuing the development of a bearish trend to the level of 0.9850 in order to test the weekly support 2, next objective at the third support of 0.9800. On the other hand, if the EUR/USD pair fails to break through the weekly pivot point level of 0.9952 today, the market will move upwards continuing the development of the bullish trend to the level 1.0088 (double top).
Upside outlook :
If the trend is able to break out through the first resistance level at 1.0052, we should see the pair climbing towards the double top (1.0088) to test it. Therefore, buy above the level of 1.0052 with the first target at 1.0088 in order to test the daily resistance 1 and further to 1.0136. Also, it might be noted that the level of 1.0203 is a good place to take profit because it will form a double top.
