FxWirePro: EUR/USD gains some upside momentum but still bearish

The EUR/USD has spiked towards 1.0847 levels, as the buyers stepped in as the risk aversion increased in the market after European stocks declined sharply after Chinese equities posted large losses on concerns of slowing economy. The pair is currently trading in overbought condition and a pullback towards downside can be expected sooner or later. 

• The ongoing upside is set to limited for this pair as the resistance level at 1.0900 is likely to act as strong barrier to the bulls and bring further decline towards lower levels. Therefore, its good to sell this pair around 1.0880 levels.
   
• To the upside, the strong resistance can be seen 1.0900, a break above this level would take the pair towards next resistance level at 1.0926 levels.
   
• To the downside immediate support can be seen at 1.0841 levels, a break below this level will open the door towards next level at 1.0810.
  
  Recommendation: Go short around 1.0880, targets 1.0800, 1.750, SL 1.0950
  
  Resistance Levels
  
  R1: 1.0880 (50% Retracement level)
  
  R2: 1.0900 (Psychological level)
  
  R3: 1.0926 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.0841 (38.2% Retracement level)
  
  S2: 1.0810 (Jan 4th lows)
  
  S3: 1.0790 (23.6% Retracement level)