- EUR/USD bears are taking control and a move into a test below 1.0500 is favourable while below 1.0520.
- Bulls need to get back into the trend for prospects of 1.0550.
As per the pre-market open analysis, EUR/USD Price Analysis: Bulls eye a break of key 1.0550 area, eyes on 1.0600, the upside levels are eyed at 1.0550 and 1.0600 but for the meanwhile, the US Dollar is firm.
As measured by the DXY index, the greenback has moved 0.28% higher against a basket of currencies to 105.23, although it is not too far away from the five-month trough of 104.1 a week ago. Nevertheless, the euro is carving out the downside in the open, pressuring key trendline support as the following illustrates:
EUR/USD prior analysis
While on the front side of the daily trendline, it was noted that EUR/USD bulls were firming from near 1.0480 support and were taking on resistance around 1.0570.
A move-through resistance will leave 1.0600 exposed while a drop in EUR/USD below the trendline will leave 1.0490 vulnerable and would open prospects of a deeper correction towards 1.0400.
EUR/USD H1 chart
The bull's first challenge will be the micro trendline resistance and the 1.0550s.
However, in the meanwhile, the bears are taking control and a move into a test below 1.0500 is favourable while below 1.0520.