Technical analysis of EUR/USD for September 19, 2016

Overview:

• The EUR/USD pair continues to move downwards from the level of 1.1173. The pair dropped from the level of 1.1173 (this level of 1.1173 coincides with the double top) to the bottom around 1.1150. Right now, the first resistance level is seen at 1.1173 followed by 1.1201, while daily support 1 is found at 1.1127. Amid the previous events, the pair is still in a downtrend, because the EUR/USD pair is trading in a bearish trend from the new resistance line of 1.1173 towards the first support level at 1.1127 in order to test it. If the pair succeeds to pass through the level of 1.1127, the market will indicate a bearish opportunity below the level of 1.1105. Also, it should be noted that the RSI is still signaling that the trend is downward as it is still strong below the moving average (100). This suggests the pair will probably go down in coming hours. However, if a breakout happens at the resistance level of 1.1201, then this scenario may be invalidated.

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Source: Instaforex.com