- The EUR/USD pair faced strong resistance at the level of 1.0560 because support turned into resistance last week. So, the strong resistance has been already formed at the level of 1.0560 and the pair is likely to approach it in order to test it again. However, if the pair fails to pass through the level of 1.0560, the market will indicate a bearish opportunity below the new strong resistance level of 1.0560 (level of 1.0560 coincides with a ratio of 38.2% Fibonacci). Therefore, there is a possibility that the EUR/USD pair will move downwards below the level of 1.0560. Overall, we still prefer the bearish scenario as long as the price is below the level of 1.0560.
- Additionaly, the RSI starts signaling a downward trend that showing strength above the moving average (100). Thus, the market is indicating a bearish opportunity below 1.0560, for that it will be good to sell at 1.0560 with the first target of 1.0426. It will also call for a downtrend to continue towards 1.0366. The daily strong resistance is seen at 1.0560. Don’t forget to set your stop loss at the level of 1.0619.
The material has been provided by InstaForex Company – www.instaforex.com