UOB Group made a forecast for EUR/USD concerning bearish trend resuming on daily price: "Only a daily closing below 1.0580 would indicate the start of a fresh bearish phase." Let's evaluate this forecast in technical point of view.
EUR/USD: bearish ranging. This pair is on primary bearish market condition located to be below 100 day SMA (100 SMA) and 200 day SMA (200 SMA) in the primary bearish area of the chart. Price is ranging within the following key support/resistance levels:
- 1.0807 resistance level; and
- 1.0591 support level.
RSI indicator's data is estimating the ranging bearish trend to be contining.
- if the price breaks 1.0807 resistance so the local uptrend as the bear market rally will be started with the good possibility to the bullish reversal of the price movement in the near future;
- if the price breaks 1.0591 support level so the primary bearish trend will be continuing up to 1.0461 level as the next bearish target;
- if not so the price will be moved within the channel.
| Resistance | Support |
|---|---|
| 1.0807 | 1.0591 |
| 1.1713 | 1.0461 |
