The pair has broken two crucial support levels. It looks like about to close below the 1.367 levels on a weekly basis. If the pair does so, the new medium-term lower level targets will come into existence. Fundamentally, the pair is very weak. Yesterday's economic data once again proved it. France lags behind the euro zone economy.
Longer term forecast- On a weekly basis, if the pair closes below the 1.367 levels, it will lead to trend reversal. If it happens, then we will see 1.3480, 1.33 and 1.32 levels. In the least case we can expect 1.31 as well. The downfall has just started.
In the daily chart, the RSI favors buy side. The RSI indicating an oversold levels, we expect the pair will pull back from the oversold levels. Though the technicals are supporting the pair for a pull back, but the fundamentals are acting very strong than technicals. We expect the pair will hit 1.3620-1.36 today and will take upturn. On the closing basis, if the pair manages well to close above the 1.36 levels, bull will hardly try to make 1.367, 1.37 and 1.3775.
For an hourly trading purpose, we expect the pair will pull back to 1.37, 1.3723, 1.3735 and 1.3775 levels. Only if it sustains above 1.37, the other levels will come. On the lower side, if the pair breaks the 1.36 levels, the bears will take the pair towards 1.356 and 1.355 easily.
Note-
Last hope for bulls is at 1.36 (200D-day EMA), a day close below this, no longs at all
Sell below 1.36
Weekly close below 1.367 is not good for longs
Daily and Hourly RSI favors limited downside at the current situation
The material has been provided by InstaForex Company - www.instaforex.com
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