Bears holding tight grip on the market

EUR/USD is looking south with Friday’s marubozu candle signaling bearish sentiment.
The daily chart indicators are biased bearish and a drop to 1.09 could be seen.

EUR/USD has so far added about eight pips in Asia, but the overall mood looks bearish, as indicated by the lower highs, lower lows structure on the daily chart and Friday’s red marubozu candle.

A marubozu candle comprises a big body and little or no wicks. A red marubozu indicates the sellers were in control throughout the day and there was no hesitation among bears while pushing prices lower.

Alongside that, the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print and the 5- and 10-day averages are trending south.

A drop to 1.09 could be in the offing. At press time, the spot is trading at 1.0950, representing marginal gains on the day. The outlook would turn bullish if the spot ends Monday above Friday’s high of 1.0985.