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EUR/USD in Bearish Continuation

After a sharp pullback, EUR/USD remained bearish last week. The sharp rally was essentially a "clear-out" pullback. The ability of the EUR/USD-bears to maintain control even after such a strong pullback suggests that the market has gotten rid of some of the strong bulls in the short-term. 

EUR/USD 1H Chart 8/3
(click to enlarge)

In the 1H chart we can see that price has retreated back below the 200-, 100-, and 50-hour simple moving averages (SMAs), and below a rising trendline from last week's low around 1.09. This week, price action looks poised to at least test that 1.09 low, with risk of breaking towards the July-lows around 1.0810. If price does approach 1.08, expect some near-term support, but be prepare for further bearish breakout with the 2015-lows in the 1.0460-1.0520 area in sight for the medium-term.