The EUR/USD pair dropped from the level of 1.0042 to the bottom around 0.9970. But the pair couldn't rebound from the bottom of 0.9970 so as to continue to fall down. Today, the first support level is seen at 0.9946, and the price is moving in a bearish channel now.
The EUR/USD pair stayed below the psychological level of 1.0042 over the day, indicating a lack of urgency to accumulate at the current levels. The bears are attempting to extend the EUR/USD pair's decline below 1.0042 in the week beginning of this week. Following the price of $1.0042 rejection, the seller takers still have the upper hand in the market, as they were able to impose more correction on the EUR/USD pair from the price of 0.9946.
Furthermore, the price has been set below the strong resistance at the level of 1.0042. 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 0.9946, the market will decline further to 0.9909 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.
However, if the pair fails to pass through the level of 1.0042 (major resistance), the market will indicate a bearish opportunity below the strong resistance level of 1.0042 (the level of 1.0031 coincides with the ratio of 50% Fibonacci retracement). Since there is nothing new in this market, it is not bullish yet.
Sell deals are recommended below the level of 1.0031 with the first target at 0.9946 so as to test the double bottom. If the trend breaks the double bottom level of 0.9946, the pair is likely to move downwards continuing the development of a bearish trend to the level of 0.9909 in order to test the weekly support 2.
On the other hand, if the EUR/USD pair fails to break through the weekly pivot point level of 1.0042 today, the market will move upwards continuing the development of the bullish trend to the level 1.0198 (double top).
Remark - tip of trading: A bear market is a period when the price of an asset has fallen by about 10% or more from recent highs. At this point, the investor fear index increases, and panic is possible in the market. A bear market is the same as a bear market, it is also called a downtrend. It is opposed to a bull market. Bullish - vice versa.
Forecast (EUR/USD):
The volatility is very high for that the EUR/USD pair is still moving between 1.0042 and 0.9878 in coming hours. Consequently, the market is likely to show signs of a bearish trend again. Hence, it will be good to sell below the level of 1.0042 with the first target at 0.9946 and further to 0.9909 to test the weekly support. On the downside, the 0.9909 level represents support. The next major support is located near the 0.9878, which the price may drift below towards the 0.9878 support region. Further close below the low end may cause a rally towards 0.9865 (the double bottom). Nonetheless, the weekly support level and zone should be considered. However, if the EUR/USD pair is able to break out the daily resistance at 1.0042, the market will rise further to 1.0198 to approach resistance 3 today.
