The bears mustn't break through the resistance level 1 USD in order to resume the downtrend. The trend of EUR/USD pair movement was controversial as it took place in the downtrend channel. Due to the previous events, the price is still set between the levels of 1 USD and 0.9800, so it is recommended to be careful while making deals in these levels because the prices of 1 USD and 0.9800 are representing the resistance and support respectively.
The EUR/USD pair continues to move downwards from the level of 1 USD. Yesterday, the pair dropped from the level of 1 USD (this level of 1 USD coincides with the ratio of 38.2%) to the bottom around 0.9928. Today, the first resistance level is seen at 1 USD followed by yesterday (the weekly pivot point), while daily support 1 is found at 0.9879.
Also, the level of 1 USD represents a weekly pivot point for that it is acting as major resistance/support this week. Thus, the market is indicating a bearish opportunity below the above-mentioned support levels, for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside.
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 USD towards the first support level at 0.9879 in order to test it. If the pair succeeds to pass through the level of 0.9879, the market will indicate a bearish opportunity below the level of 0.9800.
Therefore, it is necessary to wait till the downtrend channel is passed through. Then the market will probably show the signs of a bearish market. In other words, sell deals are recommended below the price of 1 USD with the first target at the level of 0.9879 . From this point, the pair is likely to begin an descending movement to the price of 0.9879 with a view to test the daily support at 0.9800.
Forecast :
If the pair fails to pass through the level of 1 USD, the market will indicate a bearish opportunity below the strong resistance level of 1 USD. In this regard, sell deals are recommended lower than the 1 USD level with the first target at 0.9879. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 0.9800. However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.0132 (notice that the major resistance today has set at 1.0132).
Comment :
- The trend is still calling for a strong bearish market from the spot of 1 USD . - Sellers are asking for a high price. - Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
- The price channel is a limited trading range in which the price moves during a certain period of time. In other words, it is a "corridor" on the price chart. The boundaries of the price channel are outlined by two lines: resistance and support.
- A resistance level is a price level from which price reverses as it approaches from the bottom to the top. This level is as if it is resisting the price, preventing it from going higher.
Daily key levels :
Major resistance : 1.0132
Minor resistance : 0.079
Pivot point : 1 USD
Minor support : 0.9879
Major support : 0.9800
