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 1.0673 and 1.0591, so it is recommended to be careful while making deals in these levels because the prices of 1.0673 and 1.0591 are representing the resistance and support respectively.
The level of 1.0625 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major resistance today. The Relative Strength Index (RSI) is considered overbought because it is below 60. The RSI is still signaling that the trend is downward as it is still strong below the moving average (100). This suggests the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend.
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 1.0673 with the first target at the level of 1.0591. From this point, the pair is likely to begin an descending movement to the price of 1.0591 with a view to test the daily support at 1.0513.
Forecast:
If the pair fails to pass through the level of 1.0673, the market will indicate a bearish opportunity below the strong resistance level of 1.0673. In this regard, sell deals are recommended lower than the 1.0673 level with the first target at 1.0591. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.0513.
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 1.0731 (notice that the major resistance today has set at 1.0731).
