Hello traders! Recently EUR/USD broke below the downtrend trendline and at the same time below the 200 Exponential Moving Average. Both breakouts occurred at the same time and could suggest further price weakness.
Today price has corrected up, which could provide a good opportunity for the sellers. As long as previously made high at 1.0890 is not broken, bears are likely to dominate on EUR/USD.
Price is expected to decline towards 127.2% Fibonacci retracement level, which is at 1.0717. Overall, it is a 100 pip move, which is very small considering recent volatility. If EUR/USD breaks below that price, the further downtrend could take place, bringing the EUR/USD rate much lower.
Bias: Bearish while below 1.0890
Potential Resistance Zone: 1.0830-1.0850
Potential Targets: 1.0717
Have a profitable trading!