- EUR/USD resistance in the 1.0300s would be expected to be an area where distribution will start to take shape.
- A change of character below 1.0270 again could be a defining moment for the pair.
At 1.0295, EUR/USD is 0.53% higher in late trade in North American trade as the US Dollar retreated across the board on Tuesday while investors look past worries about China's COVID flare-ups, boosting demand for more risky currencies. While investors will be parsing minutes from the Fed's November meeting, due on Wednesday, for any hints about the outlook for interest rates, the technicals point to a downside continuation given the break of recent daily structure 1.0270 as the following analysis will illustrate:
EUR/USD daily chart
The price dropped below the higher lows which made for a change in character. Nevertheless, the bulls have moved in and are retesting an area of price imbalance and the neckline of the M-formation. Should the bears commit, then a downside continuation could be in order for the remainder of the week.
EUR/USD H1 charts
The price is on the back side of the trend and the highs have potentially been locked in. Resistance could serve as the last stop for the correction into the peak formations of the prior bullish trend.
EUR/USD M15 chart
Down on the 15-minute charts, the 1.0300s would be expected to be an area where distribution will start to take shape, and a break of the trendline supports will be eyed. A change of character below 1.0270 again could be a defining moment for the pair as it will likely lead to a downside breakout.
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