EUR/USD selling off once more
EUR/USD has been selling off heavily so far this week and this seems like a theme which is likely to continue given yesterday’s break back below the crucial $1.0808 support level. That now turns into resistance should we see any substantial upside.
The overnight rally fell short of the initial resistance at $1.0781, which provides us with a renewed bearish bias. Despite a strong current candle, we clearly remain within a downtrend over the past week and thus there seems a good chance that we will head back below $1.0710 rather than up through $1.0781.
Should we see price fail to break through $1.0710 and instead post an hourly close above $1.0781, then this would provide more of a bullish tone.
Key resistance levels are $1.0773, $1.0781 and $1.0808, with support levels at $1.0710, $1.0689 and $1.0674.