On the daily chart below, we can
see that the downtrend remains strong in the EURUSD pair. The multiple failures
to break the 1.1033 high, coupled with stronger than expected US data and a
hawkish repricing in interest rates expectations, led to a big selloff. The double
top at the
1.1033 high may take us all the way back to the 1.0533 support, which is also the neckline of
the pattern.

In such a scenario, EUR/USD would
erase all the post-SVB collapse rally, which is something we’ve also been
seeing across the other markets. The divergence between the two tops with the MACD also strengthens the case for a
return back to the 1.0533 level.

EURUSD Technical Analysis

On the 4 hour chart below, we can
see how the EURUSD has been trading lower within a falling channel with clear
swing highs and swing lows. The price has now reached the first downside target
in the form of the bottom of the previous divergent rising channel. We should
see a bounce on this level as the price has been diverging with the MACD
falling right into this support. This should be a signal that the bearish
momentum is waning, and we may see a pullback before the next fall.

On the 1 hour chart below, we can
see that the price recently bounced from the lower bound of the channel to
trade higher into the upper bound of the channel. The 50% Fibonacci
retracement level stalled the rally and after a bit of
consolidation, EUR USD broke lower, retested the support
turned resistance and continued lower.

The buyers should now lean on the
1.0710 support with defined risk just below it and target the 1.0760
resistance. The sellers, on the other hand, will want to see the price to break
through the support to target the 1.0533 level, but we should also see them
lean on the 1.0760 resistance for a better risk to reward setup.

This article was written by ForexLive at www.forexlive.com.