EUR/USD - Daily close below 1.0785 would be bearish

Euro’s failure to capitalize on the bullish inverse head and shoulder breakout by convincingly taking out the descending trend line coming from 2016 highs followed by a failure to hold above the Feb high of 1.0829 and the subsequent drop below inverse head and shoulder neckline support of 1.0785 suggests the rally from the low of 1.0341 has topped out at 1.0906. However, the trend reversal is seen happening only if the spot ends the day below 1.0785 levels today and tomorrow, in which case the losses could be extended to 1.0675-1.06 handle.

Only a convincing breach of the descending trend line coming from 2016 highs would revive bullishness.