EURUSD reached the 1.10 level last week and was soon rejected and pushed down sharply. A bearish shooting star candlestick pattern (or bearish hammer) has formed on the weekly chart. In technical analysis, this is a clear bearish sign appearing at a key resistance zone. The control has changed hands from the bulls to the bears here, and further downside action should be likely.

EURUSD has already reached the first support at the 1.07 zone. The next one is at 1.05, but the more important one is 1.03. It will be no surprise if EURUSD soon trades toward the 1.03 area.

To the upside, 1.10 is now hard resistance that stopped the bull trend. It’s unlikely it will be tested again soon, but even if it is, we can expect strong bearish pressures to emerge.