• EUR/USD bears are in control but a correction could be imminent. 
• The bears are taking on the recent hourly structure for the open. 

EUR/USD is on the back foot as the market looks for safer havens due to the covid concerns sweeping through Europe. The pair hit a 16-month low amid the COVID surge while expectations have also grown that the European Central Bank will be lagging with regards to interest rate hikes compared to other central banks. Nevertheless, the technical outlook is mixed considering the demand area that the price has now moved, as illustrated in the following analysis:

EUR/USD weekly chart

The weekly chart is bearish, but the price is moving into a demand area and is probably due for a correction and traders will be aware of this and potentially less committed to the downside at this juncture.  

EUR/USD daily chart

The price action is certainly bearish and the bias is to the downside, although bears might be waiting for a discount and waiting for at least a 38.2% Fibonacci level.

EUR/USD H1 chart

The price is teasing by breaking to fresh lows in the open and seeming as though it is going to continue to the downside, which of course is highly probable given the recent price action. However, selling in a demand area might not be the best methodology as part of a trading strategy.