EUR/USD about to dive?

The EUR/USD has been creeping higher over the past few days, after a big drop in early Feb. But this appears to be a dead cat bounce.

EUR/USD H1 chart – source: TradingView

The hourly chart shows price failing to hold above old highs, where it has just created a rather large bearish engulfing candle. If I am reading this correctly, the 1.0870 area should now hold as resistance, leading to a potential drop to a new 2020 low.

For confirmation, a break of the bullish trend may be required before the bulls rush for the exits.

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