In the morning session, the euro/dollar pair is trading in the channel near the levels from the previous close. The US dollar continues to strengthen against the euro. Currently, the European currency remains under pressure, while the greenback is appreciating against all other majors. On Wednesday morning, markets are waiting to see a number of important macroeconomic reports from Europe. They can possibly provide some support for the euro.
The pair is likely to go through a moderate upward correction in the first half of the day. However, I expect the downtrend to continue as the pair is still trading in the bear market. A possible pivot point is seen at 1.1735, and I’m planning to sell below this level with the targets at 1.1645 and 1.1605. Under a different scenario, the pair will start to rise above the mark of 1.1735. After settling there, it may then test the levels of 1.1755 and 1.1775.
On the EUR/USD pair, the price indistinctly sticks in 1.1680 without a chance of breaking higher. At the same time, the price that buyers are gradually pressing to this resistance, and in the end, even with such forces, they are able to break through higher. How much strength they will have after this is another question, and it is possible that immediately after this breakdown, a strong downward movement will follow.