The EUR/USD recently faced a heavy technical rejection from the 1.1170 resistance level as traders moved back into the greenback, following the release of better-than-expected US retail sales data.
EUR/USD technical analysis shows that the bulls must defend the 1.1060 support level this week or the EUR/USD pair could slide back towards the 1.0990 level.
EUR/USD medium-term price trend
EUR/USD analysis over the medium-term shows that the pair remains technically bearish while trading below the 1.1140 level.
After a promising rally towards the 1.1170 level on Thursday, the EUR/USD pair quickly retreated back towards the 1.1100 level after US retail sales data outpaced expectations.
The EUR/USD faces a pivotal week on both the technical and fundamentals fronts, as the pair approaches critical technical support, and the ECB central bank policy meeting and PMI data prints later this week.
Bulls must defend the 1.1060 level or the EUR/USD pair could quickly slide back towards the 1.0990 support level, which is the strongest area of medium-term support on the daily time frame.
Failure to break the 1.1060 support level should be bullish for the EUR/USD, and could result in a strong counter-rally back towards the 1.1170 level.
EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair is bearish in the short-term while trading under the 1.1120 level.
EUR to USD analysis indicates that the 1.1120 level is likely to remain a key pivot for traders over the course of the upcoming week.
The four-hour time frame shows that a bearish triple-top pattern formation is now in play, which could see the EUR/USD coming under more selling pressure this week.
Short-term traders should also be aware that the US dollar index is testing towards its 200-day moving average for the first-time this year.
This should be something traders should watch closely, as it will play a role in the direction of the EUR/USD.
A rally above the US dollar Index’s 200-day moving average could provoke a major rally in the greenback and cause the EUR/USD to drop back towards the 1.1000 support level.
EUR/USD technical summary
EUR to USD analysis shows that the pair was recently heavily rejected from an important upside level. Watch out for a potential drop towards the 1.0990 level if the 1.1060 support level is broken this week.