EUR/USD Bearish Reversal Weighed by DeMark Signal
EUR/USD’s latest bearish reversal is extending lower into psychological support at 1.3000. The move is being weighed by a recent DeMark™ exhaustion signal.
A decisive close below 1.3000 is required to unlock the important multimonth reversal pattern into 1.2625 (16 Jan swing low).
Meanwhile, only a sustained daily close back above 1.3284 (01 May high), puts this scenario on hold for a potential recovery into our upside target zone at 1.3460/62 (200-day average).
Inversely, the USD Index has breached the lower side of its multi-week triangle consolidation pattern. Support remains at 78.66 and 78.09.
Expect these levels to act as one of the last points of defence for a relaunch of the greenback’s recovery which is still part of the bullish cycle into 80.73 (15th March high) and 81.78 (13th Jan swing/12 month high).