After an extremely short correction on Friday and yesterday’s continuation of declines, EUR/USD tends to test lows from 13 years ago! Will today’s session, a few days before Christmas also end with decreases?
Surely this would be a wish of traders who encouraged by commentary of analysts from Citi sold the EUR/USD last week. Declines on the main currency pair continue from the beginning of the week, although on start it looked more bullish. At the opening of the markets during night from Sunday to Monday EUR/USD continued trend and reversal occurred when the market was joined by investors from Europe.
EUR/USD remains in downward channel with a relatively large bear slope. Pair still did not beat local support around 1.0370 and it seems to be the last obstacle to further free fall.
A large group of bulls in the selected area managed to bring more than hundred pips correction late last week. If the price again launched a wave of depreciation, we would have to deal with a potential formation of a double bottom, which could be a prelude to a deeper correction – even in the vicinity of 1.06.
It seems that the favored side of the market are bears. In this case, validated defeat of the green zone will be a signal to sell EUR/USD. You should bear in mind that the upcoming period has reduced liquidity. Markets during the Christmas and New Year may behave less technically.
