Overview:
- The EUR/USD pair has already formed a strong resistance level at 1.0871. Moreover, this price coincides with the ratio of 50% Fibonacci retracement levels on the H1 chart. Additionally, after it failed to close above 1.0902 (the weekly pivot point sets at the price of 1.0902) last week, the pair started signaling for the bearish market at this spot. It should be noted that the price has been still moving between 1.0871 and 1.0770. So, we expect a range of 100 pips. Therefore, the pair will have a rather convincing downside momentum. The structure of the fall does not look corrective. In order to indicate a bearish opportunity below 1.0871, it will be a good idea to sell below this area with the first target of 1.0805 to test the double bottom (50% Fibonacci retracement levels). Its chart will call for a downtrend in order to continue bearish move towards 1.0760.
Trading recommendations:
- The key level of 1.0902 represents a downtrend to confirm the bearish market. This level will act as a strong resistance because it coincides with the weekly pivot point on the second day of April, 2015. Therefore, sell deals are recommended below the level of 1.0902 with targets at the level of 1.0800, and it will resume towards 1.0760 to try testing the support.
