EUR/USD upside likely to be fleeting
EUR/USD has gained some ground overnight in a retracement of the weakness we saw on Monday. The pair is trading within a falling wedge pattern, yet despite the bullish connotations associated with this pattern, we would need to see a break through $1.0659 to provide a more bullish outlook.
Until then, there is a good chance that any short-term gains are fleeting, with further losses around the corner. A break below $1.0589 would be a significant signal that we are going to see further downside given that it represents a significant swing low from January.