The EUR/USD pair was rejected at rising trend line (Mar low-April low and extended) before falling below 1.1115 (50% of 1.1714-1.0517) in the NY session. Stock markets in the US were wobbly, but failed to support the funding currency EUR.
Stock markets in Asia dropped and helped the EUR/USD pair re-test 1.1115 (50% of 1.1714-1.0517) levels. However, the bullish momentum was not strong enough to see the pair through 1.1115 levels. A strong US advance data coupled with stable equity markets could push the EUR/USD pair below 1.1060 (rising trend line support).
Technicals – Daily close below 1.1060 would be bearish
1. Bullish view invalidation is seen only if the pair sees daily close below 1.1060 (rising trend line support).
2. Rejection at 1.1115 (50% of 1.1714-1.0517) in Asia following a failure to take out larger trend line resistance on Monday has left the doors open for a slide to 1.1060.
3. Bears need to treat a break below 1.1060 with caution and watch out for a possible rebound from the same, in which case, the spot could take out 1.1115 and rise to 1.1173 levels.
4. Nevertheless, intraday break below 1.1060 could yield 1.1030 levels.
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