EUR/USD: Breaks Ascending Trendline, Risk Of Range Establishment

First time since the bottom found post the ECB dovish meeting that the market structure is starting to be disrupted, with the violation of the ascending trendline a red flag.

Judging by the slope of the German vs US bond yield spread, both micro and macro, pockets of significant demand should still be found at key decision points (green lines).

The European shared currency has been at the mercy of the UK Brexit developments this week, mostly piggybacking the overall direction in the Sterling market.

The multiple rejections off the 1.1335-40 vicinity occur on the back of the 100% proj target as the extension of the latest market’s successful rotation from 1.1277 thru 1.1305.

Thursday’s setback found sufficient demand interest at the intersection of Wednesday’s PoC (Point of Control), that is, where the highest concentration of volume occurred.