EURUSD faced a sharp selloff today, rejected from the trendline that began at the start of July. The downward move was expected given the upcoming no-confidence vote in France and the painful political process likely to follow, while budget problems continue to be postponed without real solutions. However, the selloff came faster than anticipated, with large candles driving the move.

Now EURUSD is trying to hold and stage an upward reaction from the 1.1630 level. If this support fails as well, downward pressure may extend into the 1.1566–1.1590 zone, where a stronger support awaits.

When trading EURUSD, it may be wise to monitor bond yields in France, Germany, and the United States, especially under current conditions.