The main scenario implies a breakdown of the local support level of 1.1752 (yesterday's and more than 3-month lows) and a further decline in towards the key support level of 1.1620, which separates the long-term bullish trend from the bearish one. The first signal for the implementation of this scenario may be a breakdown of the support level 1.1780.

In the alternative scenario and after the breakdown of the short-term resistance level 1.1806, further correctional growth towards the resistance levels 1.1880, 1.1920 should be expected. After consolidating in the zone above the resistance level of 1.1960, EUR/USD may go to distant targets at resistance levels 1.2180 (Fibonacci level 50%), 1.2260, 1.2340, 1.2450, 1.2500, 1.2580 (Fibonacci level 61.8%), 1.2600.

Trading Recommendations

Sell Stop 1.1765. Stop-Loss 1.1815. Take-Profit 1.1710, 1.1620
Buy Stop 1.1815. Stop-Loss 1.1765. Take-Profit 1.1880, 1.1920, 1.1960, 1.2065, 1.2180, 1.2260, 1.2340, 1.2450, 1.2580, 1.2600

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