EUR/USD is on the defensive, having breached multi-month trading to the downside last week and the risk aversion could only bolster the bearish technical setup, sending the pair below key support at 1.1187 (61.8% Fib R of Dec. 216 low – Feb. 2018 high).
Hourly chart
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As seen above, the post-NFP bounce seems to have run its course near the resistance of the downward sloping (bearish) 50-hour moving average (MA). Also, a bear flag is seen – a pattern which often ends up accelerating the preceding bearish move. The pair, therefore, risks falling back to Friday’s low of 1.1176.
Weekly chart
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Sellers failed to penetrate 1.1187 (61.8% Fib R of Dec. 2016 low/Feb. 2018 high) last week. However, with risk aversion and bearish technical setup, that support level could be breached this week.
Trend: Bearish
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