The euro fell to its weakest level against the greenback since April 2017 last week as the US dollar index rallied to a fresh multi-year high.
EUR/USD technical analysis shows that a falling wedge pattern on the daily time frame could dictate the next strong directional move in the pair.
EUR/USD medium-term price trend
This could be a pivotal trading week for the EUR/USD, and could decide the overall trend for the pair for months ahead.
EUR/USD analysis over the medium term shows that a large falling wedge pattern on the daily time frame should dictate the trading action.
The EUR/USD continued its recent reversal from the 1.1500 level last week, as the pair fell below the 1.0700 level, hitting levels not seen since April 2017.
The bottom of the falling wedge pattern is found around the 1.0775 level. Weakness under this area could prompt further losses in the EUR/USD pair towards the 1.0500 and 1.0340 levels.
Should bulls maintain price above the 1.0775 level, the EUR/USD pair could rally back towards the top of the falling wedge pattern, which is currently found around the 1.1135 level.
EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair is bearish over the short term while the price trades below the 1.1000 level.
Last week a bearish head and shoulders pattern played out to the downside and reached its full downside projection.
EUR to USD analysis shows that a bullish counter rally could occur back towards the 1.1170 level this week.
With the head-and-shoulders pattern playing out to its full downside potential a counter-rally in the EUR/USD pair appears plausible.
A bullish reversal pattern with over 200 points of upside potential will form if price starts to hold above the 1.0900 level.
Short-term traders may also need to confirm that price top is in play, following the recent higher monthly high that was created around 1.1500 level.
EUR/USD technical summary
EUR to USD analysis shows that the 1.0775 level is likely to be a pivotal technical area this week. Bulls may target the 1.1170 level if the price starts to settle above the 1.0900 level.