EUR/USD threatens a short-term bounce
Yesterday saw EUR/USD break marginally higher than the key $1.1162 swing high, thus negating the recent creation of lower highs. This is not a worry for the longer-term outlook, which remains bearish irrespective of whether we see a period of upside or not.
However, for the near-term we need to see either a push back below $1.1122 to continue the recent downtrend, or a break through $1.1166 to point towards further short-term gains. Interestingly, such countertrend reversals often see deep retracements and therefore it makes sense to keep an eye out for whether we see any response to the 76.4% pullback ($1.1133).
For now, the downtrend remains intact, yet those without a position may want confirmation of a trend continuation first.