It’s a big day for European currency pairs as the European economy is due to release a series of low to medium impact events. These events are services PMI and have been driving a sharp movement in the market lately. Check out FX Leaders Daily Briefing, April 03 to read more about these events.

Let us swiftly move towards the trade setup now. We just spotted a bearish pattern on the EUR/USD chart. As you can see on the hourly chart, the pair is testing a bearish trendline resistance near $1.1227. A closing of bearish candle below this level will confirm a bearish setup.

Nevertheless, the US fundamentals are against this technical setup. In order to be more sure about the trade, we should wait for the European Services PMI figures which are releasing in an hour from now.

EUR/USD – Key Trading Levels
Support Resistance
1.1186 1.1218
1.1168 1.1234
1.1135 1.1267
Key Trading Level: 1.1201

EUR/USD Trade Plan
Before the news, the EUR/USD is likely to trade bearish $1.1230 with a stop above 1.1240 and a target of $1.1200 and $1.1180.

Good luck!