Citi discusses EUR/USD technical outlook and flags scope for further downside.
"EURUSD peaked the week of 04 Sept 2017 at 1.2092 and entered into a deep correction that took it back to 1.1554 over 9 weeks. That was the deepest correction since the rally began in earnest in April that year. Thereafter it rallied higher to the 1.2555 Feb 2018 peak. Then, as now, weekly momentum was very overbought and started to turn lower," Citi notes.
"Good support comes in between 1.1754 and 1.1782 and if that gives way then a deeper move towards 1.15 again would look an increased danger. A weekly close this week below 1.1763, if seen, would be a bearish outside week at the trend high and suggest more losses to come," Citi adds.