EUR / USD remains under pressure around 1.0425-30, fading Friday night's bounce from a 15-day low within a bullish descending wedge chart formation.
In doing so, the major currency pair not only retreats from the top line of the indicated wedge, but also moves away from the 50-HMA. However, the bullish MACD points out that the lows reached since May 13 keep buyers confident.
However, intraday sentiment suggests further weakness in the pairtowards the 1.0400 mark.
After that, the wedge support line indicated around 1.0355 and the annual low of 1.0349 marked in May will be important to keep an eye on the bears. In the event that EUR / USD dips below 1.0349, the January 2017 low of 1.0340 could serve as validation points for the ride south.
Alternatively, buyers must provide a successful breakout of the 50-HMA and the upper wedge line around 1.0445 toregain control.
Even so, the 200 HMA level surrounding 1.0515 could act as an additional filter to the north before driving the northward run towards the late June high near 1.0615.
Overall, EUR / USD is likely to experience some intraday weakness but could represent a short-term corrective pullback.
In doing so, the major currency pair not only retreats from the top line of the indicated wedge, but also moves away from the 50-HMA. However, the bullish MACD points out that the lows reached since May 13 keep buyers confident.
However, intraday sentiment suggests further weakness in the pairtowards the 1.0400 mark.
After that, the wedge support line indicated around 1.0355 and the annual low of 1.0349 marked in May will be important to keep an eye on the bears. In the event that EUR / USD dips below 1.0349, the January 2017 low of 1.0340 could serve as validation points for the ride south.
Alternatively, buyers must provide a successful breakout of the 50-HMA and the upper wedge line around 1.0445 toregain control.
Even so, the 200 HMA level surrounding 1.0515 could act as an additional filter to the north before driving the northward run towards the late June high near 1.0615.
Overall, EUR / USD is likely to experience some intraday weakness but could represent a short-term corrective pullback.