- EUR/USD looks to have charted a lower high around 1.12.
- Hourly chart indicators are reporting bearish conditions.
- Risks appear skewed in favor of a re-test of Wednesday’s low.
EUR/USD is currently trading near 1.1160, representing a 0.20% drop on the day, having failed to chew through offers placed around 1.12 multiple times during the overnight trade.
The bounce from Wednesday’s low of 1.1055 looks to have formed a bearish lower high at 1.12. Additionally, the 50- and 200-hour averages look set to produce a bearish crossover, a sign of strong downward momentum.
As far as indicators are concerned, the relative strength index on the hourly and 4-hour charts is reporting bearish conditions with a below-50 print.
All in all, a re-test of Wednesday’s low of 1.1055 could be in the offing. A violation there would shift the focus to the 4H 200-candle average, currently located at 1.1012.
On the higher side, consecutive hourly closes above 1.12 are needed to set the tone for a recovery toward the hourly chart resistance at 1.1334 (lower high created on March 11).