EUR/USD: Sellers In Absolute Control, 1.13 Next Target

Buyers continue suffocated by the selling pressure ignited ever since Feb 4th. While in the last early stages of the bear rally the trend developed in a non — volatile orderly manner, the last 2 trading days we’ve seen buying flows coming in with more impetus. Regardless, attempts to regain control above the previously highlighted critical 1.1350–60 have failed with each corrective leg up being weaker in magnitude (35p followed by 28p). With the 1.1325 low now taken out, the next focal point is likely to be 1.13 round number. Any rebounds will face pressure technical pressure emanating from momentum traders given the slope of the 25-HMA. Similarly, a descending trendline off Feb 4th high alongside Feb 7, 8 POCs overhead suggests further clusters of offers ahead that may limit any rally and still make it corrective in nature with the market eyeing 1.13, where significant buying pressure is a real possibility judging by the major divergence with the yield spread. Also note, the mentioned psychological level is a perfectly symmetrical target as a 100% measured move from 1.1512–1.1405.