The euro has been recovering against the US dollar over the last few weeks, however, there are some signs that there is still some bearish pressure.
EUR/USD - Weekly time frame chart
On the weekly chart, we can see that the bullish momentum started to ease last week after the buyers failed to break above the resistance zone marked by 1.03634.
EUR/USD, W1 time frame chart. Source: xStation 5
If we look at a lower time frame chart, we can see that the price is currently testing the channel that was previously broken.
This will be an important point for us to understand the next movement of the Euro against the Dollar.
EUR/USD, 4 hour time frame chart. Source: xStation 5
According to the dollar index, the bearish scenario is likely to happen as long as EUR/USD remains above the neckline zone.
Dollar Index, 1 hour time frame chart. Source: xStation 5
USD is leading the gains this morning.
Heatmap. Source: xStation 5
Henrique Tomé, XTB Portugal
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