Sellers Back into the EURUSD
Sellers have moved back into EURUSD tonight with a break of short-term support that was being respected at 1.0803. USD demand has returned at this point in the London session with risk majors moving lower to USD.
Selling at this stage is across the board, AUDUSD is down 0.59% and GBPUSD -0.27%.
Looking at the EURUSD daily chart, we can see the clean break of the short-term support that held today during the Asian session. The next target for sellers is the main support. A break of this level could set up a new extension lower that could test levels not seen since March. The main pattern that remains in play is a descending triangle – sellers will need to break out to confirm a new extension. Overall price has been consolidating since April so if sellers fail to push a breakout it wouldn’t be a surprise to see price continue to hold in the consolidation pattern on the short-term.