EURUSD is likely to make a huge move towards 1.1200 in near term and 1.0500 in longer period of time. There are many Technical aspects and fundamental reasons which favoring prices to go down. In this chart, we see Stochastic signaling bearish crossover in overbought territory. Trend wise, prices are moving down in a channel with a beautiful head & shoulder pattern. The near term target is actually completing the neckline of the pattern and the next target (long term target which is defined from the length of the highest swing in the pattern to the neckline will be the length from neckline to the target mentioned) is 1.0500. From April 2018, RSI is unable to sustain above its 50 mark level.
Fundamentally, Italy’s controversial 2.4% deficit target can be discussed. So just like that, any hopes that the stand-off between Italy and the EU would be resolved have been break. In the confusion, the EURUSD pointing both sides of the 1.14 handle but was trading below around 1.1385.