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EUR/USD pulls back from recent uptrend
EUR/USD fell below trendline support, with the pair moving into a crucial area of support that will determine the outlook for the week ahead. The pair needed to either break through $1.1746 for a more bullish outlook, or below trendline support to prove that we could be set for a more bearish phase.
Since we saw the latter, we would need to see a break below the first swing low of $1.1594 in order to prove that this is a bearish reversal/retracement. With the 200-day simple moving average (SMA) also featuring that level, the fact that we have seen the pair hold up at this point means we are waiting for a break or rebound to show the way forward over the near term.
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