Risk-off sentiment is again present at the start of this week, with equities once again under pressure while US dollar pressures the major currency pairs.
EUR/USD - Daily Time Frame Chart
On the D1 chart, we can see that the bearish momentum has resumed at the end of last week and it seems that sellers are trying to test the lower limit of the bearish channel (once again).
EUR/USD, Daily time frame chart. Source: xStation 5
EUR/USD 4 hours time frame chart. Source: xStation 5
However, when we reduce the time frame, we can see that some evidence is beginning to emerge that points to a possible oversold state on the part of the price - which could lead to a short-term bullish correction.
USD is leading the gains at this moment.
Heatmap. Source: xStation 5
Henrique Tomé, XTB Portugal
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