Limited corrective gains as background studies continue to weaken. Strong resistance up to 1.1200. Lower in the coming weeks.
EUR/USD is attempting to stabilise, following steady losses, with prices now within reach of 1.1000. Improving shortterm studies suggest potential for a test of the 1.1050 break level, but further strength is expected to find difficulty reaching congestion around 1.1200 as background studies continue to weaken and investors maintain a sell-into-strength strategy. In the coming weeks, downside tests are expected to resume, with a close beneath the 1.0820 low of March opening up the 1.0790 retracement and 1.0777 low of 21 January.
Continuation to the 1.0709 monthly low of 5 January cannot be ruled out.