On the daily chart below for EURUSD , we can see that after multiple failures at the 1.1033 high, the price started to roll over, and as the moving averages crossed to the downside, the sellers took control. This may even turn into a big double top pattern with the neckline being at 1.0533.

The price is now making lower lows, and with the moving averages crossover, suggests that we are finally in a downtrend. We can also see that the two tops were diverging with the MACD and that generally makes the pattern more reliable. The first support that the sellers will be targeting is the swing low at 1.0750.

EURUSD technical analysis

On the 4 hour chart below, we can see that the price has been trading upwards within a rising channel. The whole rally was diverging with the MACD, which is generally a sign of weakening momentum and it’s often followed by pullbacks or reversals. Once the price broke out though, we were starting to look at a reversal, and the target is usually the bottom of the channel, which in this case is the 1.0750 support. After breaking out of the channel, the price ranged a bit just beneath the 1.1033 high, but eventually broke out. The moving averages are now acting as resistance for the sellers.

On the 1 hour chart below, we can see that after the price broke out, it came back to retest the support turned resistance and eventually started to fall. Last Friday, the selloff extended as the University of Michigan report missed expectations across the board and the long term inflation expectations surprised with a big jump.

Fed Chair Powell once mentioned that they are considering this data, so the market reacted to it. Right now, we can see that the price broke below a counter-trendline that was supporting the pullback. The sellers should now eye a break of the low at 1.0843 in order to extend the selloff to the 1.0750 support. Today, we have the US Retail Sales report, which is expected to be market moving, so watch out for that.