EUR/USD, GBP/USD, and AUD/USD head lower, but will recent bullish trend return?

EUR/USD seeks to stabilise after trendline decline

EUR/USD has been hit hard over the course of the past 24-hours, with fears around Nancy Pelosi’s visit to Taiwan bringing some haven demand back into play for the dollar. The recent gains for EUR/USD had brought the price back into trendline resistance, which roughly correlates with the location of the 200-simple moving average (SMA) indicator.

With that in mind, there is a good chance we see the price roll over in the direction of the wider trend here. With the stochastic reversing upwards from oversold, there is still a chance we rebound here though.

As such, it makes sense to watch for a break below the $1.0096 level before looking for bearish positions. Until then, there is still a chance we see the bulls come back into play to push the price towards trendline resistance once more.

Leave a Reply

Your email address will not be published. Required fields are marked *