- EUR/USD bears in charge on the back of the daily bearish engulfing candle.
- There are prospects of a meanwhile correction as per the lower time frames.
EUR/USD is on the back foot for the start of the week following a strong offer on Friday as the US dollar firms around central bank themes and risk-off tones.
The following illustrates EUR/USD's technical outlook from a daily and hourly perspective.
EUR/USD daily chart
As per the daily chart, the price has penetrated the prior daily lows in a strong bearish engulfing candle. This leaves the bias with the bears on the way to a test of 1.12 the figure for the week ahead.
EUR/USD H1 chart
The euro's hourly chart sees the price in a strong downtrend also. However, there is scope for a meanwhile correction back to test above 1.1250 towards a 50% mean reversion that has a confluence with prior lows and previous support structure.
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