EUR/USD: USD continues to fall

This Monday is being marked by corrections in most assets that experienced significant appreciation last week.

Regarding EUR/USD, the euro is beginning to benefit from the improved market sentiment after equities witnessed a strong recovery last week.

Daily Time Frame Chart

When analyzing the pair on the D1 chart, we can see that on Friday the price began to show signs of slowing down and is currently retreating. Nevertheless, the main trend still appears to be bullish.

Source: xStation 5

USD INDEX Daily Time Frame 

In the US Dollar Index, we can observe that the bearish scenario for the USD is also confirmed according to the analysis we have. The price has tested the Fibonacci retracement levels at 78.6% multiple times, but as buyers failed to break above this zone, sellers eventually regained control of the price.

Source: xStation 5

Henrique Tomé,
Analyst Portugal