EUR/USD weakness points towards potential further breakdown
EUR/USD managed to break lower from its consolidation yesterday, coming off the back of a rally into the 50% retracement and 200-day simple moving average (SMA).
However, given the mixed signals seen in a wider context (higher highs and lower lows), we need to see a break below $1.1432 to provide a more bearish outlook for the pair. Until then, there is a chance we could be retracing. Whether or not the price reacts to the 76.4% retracement at $1.1477 will go some way to telling us whether we are retracing or due to break further to the downside.