EUR/USD is trading in the red zone and has almost erased today's gains due to USDX's rebound. Technically, the pair showed some overbought signs, but it is premature to talk about a corrective phase.
The lack of important data and events could help the greenback to recover versus the euro. The pair could develop a corrective phase, only if the US Dollar Index resumes its current bounce back.
EUR/USD Bearish Reversal Favored!
EUR/USD failed to retest the upper median line and now, it is trading around the1.2200 psychological level again. It was rejected by the R1 (1.2247) level, a bearish closure under the Pivot Point (1.2188) could bring more sellers into the game.
The price is trapped between the 1.2271 and 1.2125 levels, so a valid breakout from this pattern brings a great trading opportunity.
Trading Conclusion!
Buy from above 1.2271 with a potential upside target at 1.24.
Sell after a valid breakdown from below 1.2125 level.
