The EUR/USD closed its 2016 book below 1.0550 and in a slow start of 2017 it has formed a bearish ABCD pattern. The spike on Friday was caused by algos and I assume it cleared most stops above 1.0590. Today it is mostly bank holiday, so the market may move slower than usual.
Any retest of 1.0590 could be used for positional shorts whereas 1.0550 serves as interim resistance and might be used for positional shorts too. 1.0450 is the first target while the drop below 1.0450 targets 1.0375.
