EUR/USD breaks below trendline support
EUR/USD fell below $1.0710 last week, following a rally into the 76.4% (drawn from $1.0874 to $1.0340) retracement last week. With the price finding resistance on that trendline, there is a good chance we are seeing a turn in the market back in favour of the long-term downtrend.
We would need to see a break back below $1.0657 to gain greater confidence that we are actually seeing a reversal. On the short-term, we have seen a pullback to the 76.4% retracement (drawn from $1.0679 to $1.0740), which represents a potential continuation of the gains we have seen since the Friday low. As such, a break back below $1.0679 would provide a short-term signal of further losses, and until that happens there is a chance we could see another short-term rebound.