The EURUSD is deemed to sustain a bearish run in the coming week’s exchanges as the price has just breached below the 1.2513 support level. Although the pair initially rose last week, the EURUSD bears soon resurged as the pair encountered the 1.2720 resistance mark, which prompted the price to descend below the 1.2620 support handle. As the new week entered, the bearish force continued to strengthen as the price managed to surpass below the 1.2513 mark and is seemingly looking for further lows.

Technical indicators under the four hour window provide the needed premises for a sell bias this week. The Parabolic SAR(0.02,0.20) is signifying a continued descent as its dot indicators are arrayed distantly atop the latest candlesticks, exerting downward pressure on the pair. Considering the wide distance between the candlesticks and the latest blotches, a descent toward the 1.2418 support mark, which serves as the next downside target, is foreseen. The RSI(14) is also suggesting a continued decline as the indicator line is on a descent after lingering along the near overbought region. With the indicator line traversing just above the oversold territory, expect further price lows to be taken. Finally, the MACD(12,26,9) is depicting the strengthening thrust of the bears as its SMA line and histogram are gaining length within the negative territory.

With the markets presumed to remain jittery ahead of the crucial European Union summit at the end of the week, reduced appetite for risk is deemed to benefit the US dollar alongside. Likewise, bleak expectations for American consumer confidence and spending reports on tap this week are deemed to further weigh on sentiment. Thereby, a short position is advised.