Odds of Federal Reserve Hikes Fade

EUR/USD Technical Analysis

The weekly chart shows that the EUR/USD pair has come under pressure in the past few months. It has slumped from the year-to-date high of 1.2076 in January to 1.1437 today.

The pair has dropped below the 50-week moving average and the 23.6% Fibonacci Retracement level. Most importantly, the pair has formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis. It is now hovering near this pattern’s neckline.

Therefore, the pair will likely resume the downward trend as sellers target the psychological level of 1.1300. A move above the 23.6% retracement level of 1.1630 will invalidate the bearish outlook.

Chris