Overview :
The EUR/USD pair dropped to 1.1004 after the release of the strong news minutes, reaching its lowest level since Tuesday. The pair has a bearish tone ahead of the Asian session as market participants prepare to analyze the upcoming US labor market data.
The outlook is turning negative for the Euro after the EUR/USD pair dropped below the 50-day SMA. Technical indicators in the daily chart point to the downside, with the Relative Strength Index (RSI) moving south breaking under 55.
Together with the price below the 50-day SMA, this offers a bearish signal. The negative tone will ease if the Euro manages to post a daily close above 1.1003. The EUR/USD pair fell sharply from the level of 1.0923 towards 1.0855. Now, the price is set at 1.0855 to act as a daily pivot point.
It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.0923 and 1.0800 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.0923 and 1.0889, which coincides with the 61.8% and 38.2% Fibonacci retracement level respectively.
That said, there was some positive economic news earlier Wednesday, with French industrial production rising 1.2% on the month in May, considerably stronger than the fall of 0.2% expected. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.0923.
Thereupon, the price spot of 1.0923 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective.
It'll indicate a bearish opportunity below 1.0923, sell below 1.0923 or 1.0889 with the first targets at 1.0836 (the double bottom is seen at 1.0836) - Support 2 has already set at the level of 1.0794. However, the stop loss should be located above the level of 1.0923.
