Investing.com – The euro looks set for a renewed modest downturn on technical factors and concerns surrounding Britain’s exit from the European Union.
The descending trend line points to a resumption of the long-term downward move.
The overbought stochastic reading also explained the spike in selling pressure on the euro on Tuesday.
The single currency touched the $1.09 level on Monday for the first time since mid-November.
The ABC wave seems to have run its course, which points to a renewal of an overall bearish trend until another correction is required.
The parabolic SAR indicator, which aims to the gauge short-term momentum of an asset, looks to be on the point of inverting to bearish from bullish.
The 100-day exponential moving average indicates support at the 50.0% Fibonacci level at $1.0695.
From a fundamental point of view, the single currency could also come under pressure as Britain begins negotiations on its departure from the European Union.