The correctional phase of the EUR/USD pair ended near the resistance level of 1.1900. There was a drop in the volume of long positions near that level. The pair got stuck at this level and retreated downwards shortly after. Judging by the Fibonacci retracement levels, the signal about a trend change was formed at the level of 23.6, which coincided with the resistance level of 1.1900.
As for market cycles, after the completion of the correction, the pair may resume its downward movement that began in early June.
Outlook
Currently, it is necessary to see more clear signs of a downward movement after a correction. The pair is highly likely to dip to the low of July 21 - 1.1752.
If the pair reaches this level and fixes below 1.1750 on the H4 chart, it may well drop to the support level of 1.1700. It is the low of the current year.
Technical indicators signal the bearish trend on the minute and intraday charts. If the price returns to 1.1752, it may continue to decline in the medium term.
InstaForex Group