EURUSD rose modestly in the intraday levels, facing the important resistance of 1.1220, which represents the ratio 23.6% of Fibonacci retracement levels for an ascending wave in the short term (from 1.0825 to 1.1342), while coinciding with touching the resistance of the SMA50, as relative power indicators reached extremely overbought levels, hinting at the start of a forming negative divergence in the Stochastic indicators as shown below the attached chart, while also the pair is affected by breaching the support of an ascending price channel that limited its previous short-term movements as shown in the attached chart.

Therefore we expect the pair to return lower in the coming trading, targeting the support of 1.1083, which represents the ratio 50% of the retracement levels mentioned earlier.

Trend Bearish