With EUR weakening for a third consecutive week, further downside pressure is envisaged. But in order for this occur it will have to break and hold below the 1.3676 level and its rising trendline.
However, with a rejection candle seen on Friday, recovery risk could happen this new week. Support lies at the 1.3676 level. Further down, support comes in at the 1.3600 level where a violation will target the 1.3550 level. Its weekly RSI is bearish and pointing lower supporting this view.
Conversely, on a recovery higher, the pair will aim at the 1.3766 level followed by the 1.3820 level. Further out, resistance resides at the 1.3900 level where a breach will aim at the 1.3966 level. All in all, EUR remains biased to the upside in the long term but faces bear threats.
Guest post by FX Tech Strategy