EUR/USD resurgence unlikely to last
EUR/USD saw yet another sharp move lower yesterday, continuing the selloff that has characterised this week’s trading. We have seen a shallow retracement higher overnight, yet given the medium-term reversal we are seeing, this is unlikely to last.
As such, we prefer to sell into rallies, with the bearish view being negated by a closed hourly candle above $1.1529. Important resistance levels that could force the next move lower are taken from Fibonacci retracements alongside the $1.1465 Wednesday low.