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EUR/USD turning lower after deep retracement
EUR/USD rallied into 200-simple moving average (SMA) resistance on Friday, with the pair turning lower ever since. This coincides with the 76.4% retracement level, with the price moving lower since reaching that zone of resistance.
Given that this rebound came from the crucial $1.1510-$1.1554 zone, we are still trying to ascertain whether we are seeing the start of a wider rebound, or a continuation of the downtrend seen throughout April-May. For the answer, we will need to see a break below $1.1510, or above $1.1852. Until then, it looks likely that we will head lower towards the $1.1554 region, with a break above $1.1721 providing a more bullish short-term signal.
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