On the one-hour chart, the EUR/USD pair continues moving in a bearish trend from the resistance level of 1.0612. Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. As a result, sell below the weekly pivot point of 1.0642.
The bias remains bearish in the nearest term testing 1.0563 and 1.0612. Immediate resistance is seen around 1.0642 levels, which coincides with the weekly pivot.
Moreover, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.0612. So it will be good to sell at 1.0612 with the first target of 1.0530. It will also call for a downtrend in order to continue towards 1.0503.
The strong weekly support is seen at 1.0500.
However, if a breakout happens at the resistance level of 1.0642, then this scenario may be invalidated.
Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.0642 this week.
