Technical Analysis - Daily time frame chart.
Through the daily chart, we can see that EUR/USD is trading at this year's lows.
The bearish momentum intensified after sellers managed to break below the market structure marked by the ascending channel, which was also supported by the Elliott wave theory - the corrective cycle.
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That said, we cannot rule out the possibility of a further bullish recovery in the near term, particularly if sentiment in risk assets improves (equities and cryptos).
EUR/USD, Daily time frame chart. Source: xStation
USD dollar index (USDIDX)
Furthermore, when we take a look at the chart of the US dollar index (USDIDX), we can see that the buyers have recently broken the previous consolidation zone.
The price has already reached the technical target, so it may start to correct downwards soon.
Daily time frame chart. Source: xStation 5
During this session, USD leads the gains.
Source: currency-strength.com
Henrique Tomé, XTB Portugal
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