EUR/USD – Sharp Correction Challenges the Bearish Outlook

• 1H: The EUR/USD started the week bearish and slid above 100 pips before sharply rallying in the European session. Yesterday’s video update and EUR/USD update anticipated a decline towards the 1.2450 area.
• The bullish swing brought the pairnear 1.2740/50, an important area. The break above 61.8% retracement is already a bad sign for the bearish scenario.
• This still could be a pullback, although the relative sharpness of the rally to the decline suggests otherwise.
• The RSI may offer some clue as well. Price level and RSI level is at a point that is challenging the bearish outlook, and there is a “battle” brewing here between bulls and bears.
• I am very interested to see what happens in the US session today. I believe it is too uncertain to determine until at least after it. I will comment at the end of the session.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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