EURUSD - Market Overview

The price reached a strong resistance zone formed by SMA100, SMA200, the downtrend line and 1.14500 and 1.15000 levels. The upward movement was stopped and we could see a bouncing from this zone. RSI confirmed the price reversal. The market moved downward and reached 1.13000 support level. The price action in this zone will tell us about further market movements.

For confirmation of the bearish trend reversal, the price will have to pass through the strong resistance zone. A breakout above 1.15000 resistance will confirm the strength of bulls. It will give us possible buy opportunities based on the breakout signal on the daily timeframe and breakout and reversals signal on hourly timeframes. But it looks like the market does not have power for passing the resistance zone. MACD histogram starts falling, and it supports a downward movement. DMI does not confirm the strength of buyers.

The logical market movement should be a breakout below 1.13000 support and continuation of the downward movement. This movement can be used for selling on lower timeframes with close stop orders and profit targets at 1.12000 support level. This support is the nearest target for sellers.