The Euro currency suffered another major upside failure against the US dollar last week, placing the pair back under short and medium-term selling pressure.
EUR/USD technical analysis shows that a sustained breakout below the 1.0770 level could cause the pair to tumble back towards the current 2020 trading low.
EUR/USD medium-term price trend
The Euro faded lower against the US dollar last week after FED Chair Powell ruled out introducing negative interest rates.
Bullish comments towards the US dollar from President Trump also sent the EUR/USD lower on the week.
Euro traders have plenty of event risk this week, with Federal Reserve Chair Powell testifying before US Congress, and the ECB interest rate decision.
EUR/USD analysis over the medium-term shows that if sellers can hold price below the 1.0770 level then a stronger decline towards the 1.0630 level could take place.
The daily time frame shows that a large head and shoulders pattern is forming, with the neckline of the pattern located around the 1.0550 level.
Technical analysis shows that if sellers fail to hold price below the 1.0770 level then a strong counter rally towards the 1.0980 level could take place.
EUR/USD short-term price trend
EUR/USD technical analysis shows that the pair has a bearish bias over the short-term while price trades below the 1.0865 level.
EUR to USD analysis shows that the pair remains trapped within a descending price channel over the short-term.
Looking at the four-hour time frame, the descending price channel is located between the 1.0950 to 1.0665 levels.
If the bears can hold the price below the 1.0770 level then a decline towards the 1.0665 level appears likely.
It is still worth considering that failure to hold the price below the 1.0770 level could cause the EUR/USD pair to rally towards the 1.0865 or 1.0950 levels.
EUR/USD technical summary
EUR to USD analysis indicates that the pair could come under significant selling pressure if the 1.0770 level is breached. The 1.0665 and 1.0630 levels are seen as possible bearish targets.