FX.co ★ Technical analysis of EUR/USD for June 27, 2016

Overview:

• The EUR/USD pair has dropped sharply from the level of 1.1427 towards 1.0911. Now, the price is set at 1.1007 to act as a daily pivot point. It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.1025 and 1.0911 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.1025 and 1.1104, which coincides with the first resistance and the 61.8% Fibonacci retracement level, respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.1025. Thereupon, the price spot of 1.1025 and 1.1104 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.1025, sell below 1.1025 with the first targets at 1.0950 and 1.0911 (double bottom is seen at 1.0911). However, the stop loss should be located above the level of 1.1150.

Comment:

• Volatility: 576.32.
• As a rule, the market will be highly volatile if the last week has a huge volatility.
• The strength of the trend is bearish.
• The risk of 168 pips should make a profit of 252 pips (risk to reward ratio of 1:1.5 is recommended).