EUR/USD bulls need to get on the back side of the trendline resistance with risk to 1.0850.
Bears eye a break of recent lows for downside execution.
EUR/USD was pressured on Memorial Day, with the price falling from 1.0743 to a low of 1.0705 as the US Dollar’s 4-day winning streak lives on that is now up some 3% vs. the Euro. The following analysis shows the price sliding out of the bullish rally toward prior support.
The M-formation is a reversion pattern and it would be expected to draw the price towards the neckline.
EUR/USD H4 chart
The Euro remains on the front side of the trend and until it breaks out, there is a focus on lower lows. A break above, however, opens risk to 1.0850.