EUR/USD Maintains Bearish Momentum; Next Stop is 1.2660-1.2680

EUR/USD Maintains Bearish Momentum; Next Stop is 1.2660-1.2680

Remaining bearish: The EUR/USD consolidated sideways at the end of last week, holding below 1.2850. It starts this week under pressure and falling below 1.28. Price action remains bearish even in this near-term time-frame as the 1H chart shows that it respected an earlier consolidation range as resistance. It is now focused on the current 1.2750 low. The moving averages are about to get back in bearish alignment. The RSI held most below 60 and is falling back below 40, a reflection of bearish momentum development in this near-term time-frame.

At this point, a failure to break below 1.2750 and a return above 1.2850 could from a bottom and neutralize the bearish outlook for the very short-term. It would also challenge some falling trendlines that has kept EUR/USD bearish since the start of February. Otherwise, the next key level to challenge the current downtrend is in the 1.2660-1.2680 area which contains the Nov. 2012 support pivot and the 61.8% retracement of the July-Feb (1.2041-1.3710) rally.