“¢ The EUR/USD pair finally broke down of its Asian/early European session consolidation phase and drifted into negative territory for the third straight session.
“¢ The intraday slide forced the pair to test a short-term ascending trend-line support, extending from yearly lows – set on April 26, through May monthly lows.
Meanwhile, the pair’s inability to capitalize on the recent positive move and repeated failures near 50-day SMA now seemed to have constituted towards the formation of a bearish double-top chart pattern on short-term charts.
Oscillators on daily/4-hourly charts have been gaining negative momentum and point to an extension of the ongoing slide, albeit slightly oversold conditions on the 1-hourly chart warrant some caution for bearish traders.
Hence, it would be prudent to wait for a convincing break below the mentioned trend-line support before confirming a near-term bearish breakdown and positioning for a slide back towards challenging yearly lows, around the 1.1100 handle.
EUR/USD 1-hourly chart
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