eurusd correction

EURUSD along with a few other major pairs exploded higher last week thanks to some USD weakness. Towards the end of the week, the USD started to build strength again causing big sell offs in pairs like GBPUSD & AUDUSD.

The EURUSD daily chart has been slow to respond to the USD weakness, maintaining buoyancy into the week close. The Friday candle however, did drop a bearish rejection candle at the week close. This could be an early warning signal to a potential mean reversion. The market is gaped away from the mean so there is definitely a high risk of one.

A break of the lows could be the trigger needed to fire off the correction, but just be mindful of failed Asia session breakouts.

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