Bearish outlook for the EUR/USD pair.
The EUR/USD pair dropped sharply from the level of 1.0929 towards 1.0829. Now, the price is set at 1.0845.
The resistance is seen at the levels of 1.0878 and 1.0929. Volatility is very high for that the EUR/USD pair is still expected to be moving between 1.0878 and 1.0800 in coming hours.
We expect the EUR/USD pair to continue to trade in a bearish trend from the new resistance level of 1.0878 to form a bearish channel.
Also, it should be noted that major resistance is seen at 1.0929, while immediate resistance is found at 1.0878. According to the previous events, the pair is likely to move from 1.0878 towards 1.0828 and 1.0800 as targets.
Moreover, if the pair succeed to pass through the level of 1.0829, the market will indicate a bearish opportunity below the level of 1.08029. So, the market will decline further to 10800 in order to return to the daily support 2. Moreover, a breakout of that target will move the pair further downwards to 0.0774 (S3).
On the contrary, if a breakout takes place at the resistance level of 0.0980, then this scenario may become invalidated.