EUR/USD daily chart
Well, the previously highlighted triple top pattern above 1.1000 is truly playing its role as the ominous signal for EUR/USD price action at the moment. The pair is trading down 0.3% again today to 1.0830 as sellers are pushing the agenda, staying in search of a test of 1.0800 and the 100-day moving average (red line) at 1.0804 currently.
That will be a big level to watch for EUR/USD from a technical perspective. The latter helped to limit the downside push back in March and a break below that this time around will allow for plenty of room to roam between that and the February and March lows around 1.0516-36 before getting to the 1.0500 mark.
It’s a tricky period for EUR/USD as while the ECB is staying more hawkish, perhaps markets were too quick to dismiss the Fed and price in a rather dovish outlook. I talked more on that here.
For now, the technicals are a great guide in terms of identifying which bias is stronger but sellers look poised to at least try and bring us to a test of 1.0800 this week.