EUR USD Holding Retracement Zone Support

The EUR USD has made a successful test of the low of the day and is currently holding above retracement zone support.

The EUR USD has made a successful test of the low of the day and is currently holding above retracement zone support at 1.4696.

Traders should watch for a potential short-covering rally late in the session as trading conditions are oversold at this time.

This currency pair is currently in a position to form a weekly closing price reversal at this time.  This is a potentially bearish longer-term formation.

Oversold conditions could set up a strong short-covering rally to set up a secondary lower top before another break begins.  This means that short traders should be watching for a quick rally over the next two days.  Watch the order flow and take protection if necessary.