EURUSD Bear Trend Continues Downward

The euro was one of the worst performers last Friday and continues to head into negative territory. At the weekly view, we can see that the pair is in a long bear trend while moving averages suggest this to be the case as well. Brexit only worsens this as key votes will occur today and tomorrow on whether or not the UK will be able to strike a deal with the common market. Moreover, an inverted treasury yield in the US signals a recession is lurking somewhere around the corner, although when it will pop up is a bit more uncertain. This only furthers speculation that the dollar will in general increase in value against a whole host of currencies as the dollar tends to be a safe haven asset. From a technical perspective, the pair's inability to capitalize on the recent bullish break through a six-month-old descending trend-line resistance and a subsequent sharp rejection slide from 50% Fibonacci retracement level of the 1.0341-1.2556 up-move now points the resumption of the prior well-established bearish trend. While the pair found a way to break up beyond short-term resistance, this appears to have been a flash in the pan with more downward pressure.

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