The EURUSD is at a crossroads moving between a medium-term bullish oblique and the bearish oblique of a short-term wedge.
The next few sessions will be crucial for the EURUSD. A continuation of the pullback below the bullish oblique would form a bearish “head and shoulders” reversal pattern, which would theoretically open the way for a return to at least $1.10.
In terms of fundamentals, the EURUSD is penalized by the uncertainties surrounding the health situation in Europe with the rapid circulation of the Delta variant. As vaccines appear to be effective against the various forms of COVID-19, Europe will need to vaccinate as many people as possible to reduce the risk of hospital overcrowding.
Observers expect the Fed to announce in July or September a reduction in the amount of asset purchases. If this is the case at the next meeting at the end of the month, the pressure could increase on the single currency. In the near term, a pullback below the bullish oblique channel would open the door to a short move towards the 1.17 level.
Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.