Overview:
The EUR/USD pair has broken support at the level of 1.1708 which acts as a resistance now. According to the previous events, the EUR/USD pair is still moving between the levels of 1.1708 and 1.1586. Therefore, we expect a range of 122 pips in coming hours. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. Hence, the price spot of 1.1708 remains a significant resistance zone. Consequently, there is a possibility that the EUR/USD pair will move downside. The structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.1708, sell below 1.1708 with the first target at 1.1586. Besides, the weekly support 1 is seen at the level of 1.1586. However, traders should watch for any sign of a bullish rejection that occurs around 1.1708. The level of 1.1708 coincides with 61.8% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 61.8% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario in coming days.
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