EUR/USD: Looking for a move lower near 1.0590 and then 1.0461

Barclays Capital made a quick technical EUR/USD forecast for this week: "We are looking for a move lower towards targets near 1.0520 and then the 1.0460 year-to-date lows." Let's evaluate this forecast concerning the technical point of view using Metatrader.

EUR/USD: bearish ranging near key reversal levels. Intra-day price (H1) is on bearish market condition located below 100 period SMA (100 SMA) and 200 period SMA (200 SMA) in the bearish area of the chart. The price is located within the following key reversal s/r levels:

• 1.0680 resistance level located between 100 SMA/200 SMA on the border between the primary bearish and the primary bullish trend on intra-day chart, and
• 1.0591 support level located far below 100 SMA/200 SMA in the bearish area of the chart.

Descending triangle pattern was formed by the price to be crossed for the bearish breakdown.

• if the price breaks 1.0680 resistance on close bar so the reversal of intra-day price from the primary bearish to the primary bullish trend may be started;
  
• if the price breaks 1.0591 support level so the primary bearish will be continuing without ranging up to the new 'bottom' to be forming;
  
• if not so the price will be moved within the channel.