The euro suffered a large decline against the US dollar last week, as the greenback strengthened across the foreign exchange market despite increasingly weak US jobs data.
EUR/USD technical analysis shows that the pair may test towards the bottom of a falling wedge pattern, around the 1.0745 level this week.
EUR/USD medium-term price trend
The euro suffered a heavy decline against the US dollar last week, as traders shunned the single currency and moved back into the safety of the greenback.
EUR/USD analysis over the medium term shows that sellers may test towards the bottom of a falling wedge pattern, around the 1.0745 level.
The daily time frame shows that the recent failure to surpass the top of the falling wedge pattern, around the 1.1130 level has weighed on the pair technically.
A potential break below the falling wedge pattern is likely to weigh heavily on the EUR/USD pair and could provoke a test of the March monthly low.
Should bulls manage to defend the bottom of the falling wedge, the EUR/USD pair could quickly recover back towards the 1.0980 level.
EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair is technically bearish over the short term while trading below the 1.1000 level.
EUR to USD analysis shows that a large head and shoulders pattern is taking shape across the lower time frames.
The overall size of the bearish head and shoulders pattern implies that the EUR/USD pair could fall towards the 0.9800 level.
The neckline of a head and shoulders pattern, around the 1.0775 support level, was tested last Friday. However, bulls did manage to defend this key technical area.
EUR/USD technical summary
EUR to USD analysis highlights that sellers may test towards the bottom of a falling wedge pattern. A large head and shoulders pattern is also forming across the lower time frames.