EUR/USD (a 4-hour chart)
All eyes were on Mario Draghi’s speech on Monday. Investors expected to hear from the regulator new guidelines regarding the further economy course and the potential consequences following the Brexit vote.
Bears seem to have returned to the game. Last week recovery lost its strengthened around 1.0700. The pair retreated from its recent highs and returned below 1.0650 post-Europe open. Sellers drove the price towards the level 1.0600 during the European hours. The price broke the 200-EMA downwards and met a barrier around the 50 and 100 EMAs in the 1 hour chart. The 200-EMA pointed lower while the 100-EMA turned neutral and the 50-EMA turned higher. The resistance is at 1.0650, the support comes in at 1.0600.
MACD grew which indicates the sellers’ positions weakening. RSI turned south.
A return below 1.0650 put on hold bulls’ plans. The bearish momentum is getting strength now. A bearish continuation through 1.0600 should lead to a continued slide towards 1.0550 as the first probable target.