EUR/USD drifts lower after bounce
EUR/USD has drifted lower overnight, following on from a substantial bounce just below the $1.0565 support level. At first glance, this looks more like a retracement or consolidation than a reversal lower, and this would point towards the potential for further gains. However, the crucial level of note here is $1.0641, which represents the first swing high out of this downtrend.
A close above $1.0641 would be a bullish indicator, with the next resistance levels at $1.0674 and $1.0689. Though, bear in mind that today we have the release of the eurozone CPI, while tomorrow brings the big ECB meeting, so fundamentals will a big concern. Also, given the long-term downtrend, any upside momentum would be seen as a retracement of the wider move lower which is expected to continue in the medium term.