The euro is back under slight downside pressure against the US dollar, after the pair suffered a heavy technical rejection from the 1.0990 resistance level last week.
EUR/USD technical analysis shows that buyers need to hold price above the 1.0990 level to encourage another test of the current monthly high.
EUR/USD medium-term price trend
The euro is starting to weaken against the US dollar after the pair reversed sharply from the 1.0990 resistance level last week.
Traders started to move back into the safety of the greenback and shun riskier currencies, following much worse than expected US retail sales and weekly jobs data.
EUR/USD analysis over the medium-term shows that sustained weakness below the 1.0880 level could prompt weakness towards the 1.0600 area.
The daily time frame shows that a technical breakout from a large symmetrical triangle pattern has now taken place, following the move under the 1.0880 level.
Technical analysis shows that the EUR/USD pair could slip back towards the 1.0660 support level while the bearish breakout remains valid.
EUR/USD short-term price trend
EUR/USD technical analysis shows that bulls need to move price above the 1.0998 level for the pair to reclaim its short-term bullish bias.
EUR to USD analysis shows that a bearish head-and-shoulders pattern has formed, following the reversal from the 1.0990 resistance level.
Looking at the two-hour time frame, the neckline of the bearish pattern is located around the 1.0830 technical area.
According to the size of the head-and-shoulders pattern, the EUR/USD pair could fall towards the 1.0680 level over the short term.
It is also noteworthy that the current yearly low for the EUR/USD pair is found around the 1.0630 support level.
EUR/USD technical summary
EUR to USD analysis highlights that a bearish breakout is in play while price trades below the 1.0880 level. A decline below the 1.0830 level could trigger further heavy losses for the pair.