EUR/USD is attempting to correct the heavy selling that has taken place over the course of several days. EUR/USD is currently trading at 1.0766 and is down some 0.66%, traveling between a low of 1.0762 and 1.0848 the high.
The Euro has been pressured by a firmer US Dollar that again enjoyed another round of solid economic data amid market optimism about a US debt ceiling deal to avert a potential default. Technically, however, the offer in EUR/USD is decelerating as the following charts will illustrate, raising prospects of a correction. With that being said, the bulls have their work cut out:


EUR/USD remains heavily offered and has broken the 1.0780s prior support. This gives way to prospects of a continuation to the potential support area between the 1.0750s and 1.0700

However, the bulls can start to monitor for signs of deceleration and a potential correction. The 4-hour trendline and horizontal resistance will be key in this regard. A failure to break above these will leave the bears in control.

The hourly chart is also showing signs that the bears are not done yet although if the bulls commit, then there will be prospects of a move to test 1.0780s and 1.0790s and then 1.0800 and the 1.0820s.

On the other hand, we could easily see a continuation from below the 1.0770s.
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