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EUR/USD rally may not last
EUR/USD has started creating lower highs and lower lows over the past 48 hours, despite early indications that we were set for a deeper retracement of last week’s sell-off. That is still a possibility, yet for now, we are seeing short-term price action following the wider trend of weakness. Thus, it seems worthwhile watching for another turn lower.
With that in mind, shorts around the $1.0924-$1.0928 region look appealing, for a 2:1 or 3:1 risk-to-reward trade to remain within this short-term downtrend. This outlook remain unless we break back above $1.0942, with the initial target at $1.0883.
Beyond this short-term idea, the wider trend is one of weakness and whether we get a deeper retracement into the $1.0968-$1.0995 region or not, it is likely we will see the market turn lower soon enough.