EUR/USD sells off once again
EUR/USD saw significant volatility on Friday, following an impressive payrolls number. Despite the typical wide swings, we have seen the market settle down and gradually resume its descent.
Overnight we have seen trendline resistance hold, leading to another leg lower and the creation of a short-term double top (neckline at $1.1033). With this break lower having created a new lower low, there is a potential for another bounce from $1.1024 support.
However, an hourly close below this level would provide a good chance for further losses. Whether we get a bounce or not, a bearish view remains unless we see an hourly close above $1.1060.
The next support level below $1.1024 is Friday’s low of $1.1002 which corresponds with the $1.1000 handle.