EURUSD - Market Overview

The price is at the resistance zone formed by the downtrend line, SMA50 and SMA100. The price action in this zone will give us an insight into further market movements and possible trading opportunities based on the daily and hourly timeframes.

If the price bounces from the resistance zone, the market will continue the downtrend. Short trades can be opened based on the reversals signal from the hourly charts. As for the daily timeframe, the price will need to break 1.13000 support level which acts as the key level now. The breakout below this level will give us additional signal confirming the strength of bears.

Alternative variant - if the price can break the resistance zone, it will confirm the trend reversal. We will be able to open buy trades based on the breakout signal. But it looks like bulls don't have power for moving above the resistance. DMI shows range market conditions and ADX line is below the signal level. It confirms that we should not expect strong movements. If we see an attempt to move upward, we must be very careful as it can give us a false breakout.