The EUR/USD pair had a negative session on Monday, as the 100 day exponential moving average offered dynamic resistance. On top of that, the shooting star that informed on Friday showed signs of resistance at the 1.12 level. The 38.2% Fibonacci retracement level is just above there as well, so we think that there are plenty of reasons why this market could sell off. However, the 1.10 level below should now be supportive as it was once resistive. With that, we are cautiously bearish, but recognize that no matter what’s going on it’s going to be volatile.
