The EUR/USD pair has faced strong resistances at the levels of 1.0009 because support had become resistance on Oct. 28, 2022. So, the strong resistance has been already formed at the level of 1.0009 and the pair is likely to try to approach it in order to test it again.
The bullish trend is currently very strong on The EUR/USD pair. As long as the price remains above the support levels of 0.9946, you could try to benefit from the growth.
The hourly chart is currently still bearish . At the same time, some stabilization tendencies are visible between 1 USD and 0.9854.
However, if the pair fails to pass through the level of 1.0009, the market will indicate a bearish opportunity below the new strong resistance level of 1.0009 (the level of 1.0009 coincides with a ratio of 78% Fibonacci).
Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).
The market is indicating a bearish opportunity below 1.0009, for that it will be good to sell at 1.0009 with the first target of 0.9946.
It will also call for a downtrend in order to continue towards 0.9900. The daily strong support is seen at 0.9854.
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.0094.
As a rule, the market is highly volatile if the previous day has huge volatility. But if the last week range was very large, then next week range will be probably moved between the weekly pivot point and resistance 1 or support 1. Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
Trading recommendations :
The trend is still bearisd as long as the price of 1.0009 is not broken. Thereupon, it would be wise to sell below the price of at 1.0009 with the primary target at 0.9954. Then, the EUR/USD pair will continue towards the second target at 0.9900. We should see the pair will fall towards the next target of 0.9854. The pair will move downwards continuing the development of the bearish trend to the level 0.9804 in coming days.
Conclusion :
The EUR/USD pair increased within a downtrend channel from the prices of 1.0009 and 0.9804 since a week. The bulls must break through 1.0009 in order to resume the uptrend.
