EUR/USD back in bearish mode
EUR/USD managed to post a short-term rebound into the middle Bollinger band, the 20-day simple moving average (SMA), yesterday. However, with the clearly defined bearish theme in play, this move proved short-lived as the price turns lower in the direction of the current prevailing trend evident over recent weeks.
We expect to see further losses come into play moving forward, while we need to see a break below $1.1554 to translate this bearish short-term trend into a wider long-term bearish picture. A break above $1.1837 would be needed to negate this bearish short-term outlook.