EURUSD enters corrective phase thanks to stronger dollar

Bears were on top of the EURUSD market during early trading on April 13, 2026. The pair opened at 1.17265—the day’s peak—and started to decline, piercing through 1.16870. Such a drop was driven by a sudden increase in demand for the US dollar.

The daily chart and technical indicators confirm this story. Over the past few sessions, the pair had been trading above the upper Bollinger Band (1.17014), underscoring strong bullish momentum. However, everything changed today: EURUSD is once again confined within the channel’s boundaries. This is a clear sign of local overbought conditions. Still, the indicator’s middle line is pointing upward, confirming that the medium-term ascending trend remains intact. However, the distance to this band leaves room for the correction to continue.

The Chaikin Oscillator remains in positive territory but signals fading bullish momentum—buyers appear to gain enough strength. Yet, the current dynamic is notably weaker than before. The trend is clearly slowing down. The indicator’s rise came to a halt just as the price began to fall. Thus, volumes of long positions are shrinking, and sellers are becoming more active.

The Stochastic Oscillator also signals the need for a reversal. Its %K line has just hit 82, entering the overbought zone. Therefore, current levels look extremely vulnerable to profit-taking.

The fundamental landscape only deepens the euro’s woes. Failed US-Iran peace negotiations and a renewed blockade of the Strait of Hormuz pushed oil prices back above $100 per barrel, sparking another flight to safe-haven assets. Stagflation risks in the region leave the European Central Bank (ECB) with little room to maneuver, while the dollar gets extra support from its status as a reliable investment option.

Pay attention to the trading strategy down below:

Sell EURUSD from current levels near 1.16870. Place Take profit at 1.16000. Set Stop loss at 1.17600.

This forecast remains relevant between April 13 and April 20, 2026.