The EUR/USD pair rallied in last week’s trading session but later met resistance at 1.1394 and formed a strong bearish engulf pattern after comments from ECB President Mario Draghi during the ECB Press Conference on Thursday.

Initial bias this week remains on the downside with 21 and 55 EMA crossed southward with SSRC signalling more bearish momentum is expected. More decline to 1.1143 support could be seen first, break of 1.1143 will argue that whole rise from 1.0517 has completed too and will turn outlook bearish for 1.0821 support next. In case of another rise, we’d continue to expect strong resistance from 38.2% retracement of 1.3993 to 1.0461 at 1.1810 to limit upside and bring down trend resumption eventually.


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