The EUR/USD pair movement was debatable as it took place in a narrow sideways channel for a while. The market showed signs of instability.
Amid the previous events, the price is still moving between the levels of 1.1162 and 1.1085 (range = 1.1162 – 1.1085 = 77 pips).
The daily resistance and support are seen at the levels of 1.1162 and 1.1085 respectively.
In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel has completed.
The price spot of 1.1162 remains a significant resistance zone. Therefore, there is a possibility that the EUR/USD pair will move to the downside and the fall structure does not look corrective.
Resistance is seen at the level of 1.1162 today. So, sell below 1.1162 with the first target at 1.1085 to test last week’s bottom.
In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1162. Furthermore, if the NZD/USD pair is able to break out the bottom at 1.1085, the market will decline further to 1.1038.
However, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 1.1206. we still prefer a bearish scenario at this phase.
The material has been provided by InstaForex Company – www.instaforex.com