EURUSD to dip, testing support levels

AFTER peaking around 1.1234 at the start of 2021, the EURUSD has fallen into a downtrend and hit a low of 1.1121 on Jan 28 this year.

Following the bottom, the pair rebounded strongly but the rally did not sustain and EURUSD at the time of analysis on Feb 25, dipped to a fresh 20-month low at 1.1107 before rebounding to hover slightly above 1.12. In the longer term, however, technical set ups are hinting at a bullish reversal.

Looking at the EURUSD weekly chart, prices have been trending lower in a falling wedge formation.