- EUR/USD is pressured towards key weekly support.
- The bears are eyeing a downside weekly extension.
The EUR/USD price on the weekly chart has corrected to a 50% mean reversion of the prior weekly sell-off. Last week's sell-off could be the start of the bearish extension
A break of 1.00965 will be important:
EUR/USD, daily chart
On the daily chart, the price has left behind a failed inverse head and shoulders:
However, the bearish bias will only be confirmed at the break of the weekly structure around 1.0010.
EUR/USD H1 chart
From an hourly perspective, the price has corrected 50% of the prior bearish impulse and has started to decelerate into a potential bearish extension for the sessions ahead.
Nevertheless, the M-formation that is developing is a reversion pattern that would be expected to see the price attracted to the neckline again in due course.
