The euro is starting to look bearish again this week. Lets take a look at the bearish breakouts in EUR/USD and EUR/GBP.
In the EUR/USD 4H Chart, we can see that price has broken below a rising trendline from the low in mid-March, which was also the low on the year around 1.0460.
If not for the fact that the prevailing trend has been bearish, the breakout is not completely convincing yet. Price is still holding above the 100-period SMA, and the 4H RSI has not tagged 30, which means there is no bearish momentum yet in this time-frame.
As we can see in the 1H chart, there is a consolidation between 1.0713 and 1.0792. A break below 1.0710 would suggest further bearish outlook that can confirm the bearish breakout seen in the 4H chart. In the 1H chart, we see that the bearish bias and momentum is in full force as price holds under the moving averages and the 1H RSI is holding below 60 after tagging 30.
A break above 1.08 however keeps the EUR/USD in consolidation ahead of Fridays NFP, but only a break above 1.0875 would open up a bullish outlook.
The EUR/GBP also broke below a rising trendline from its low on the year (0.7014). Much like EUR/USD, EUR/GBP is still above the 100-period SMA and the 4H RSI has not tagged 30.
In the 1H chart, we can see EUR/GBP in an intra-session pullback. Now, price is still holding under the moving averages and the rSI is still holding under 60, so the bearish bias and momentum is still in play in the near-term. A break above 0.73 might keep EUR/GBP back in consolidation/bullish correction. Otherwise, the pressure remains to the downside towards the 0.7014 low.
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