EUR/USD Sell-Off Began!

EUR/USD is trading at 1.1839 and it seems heavy enough to resume its drop. It flirts with the 1.1835 lower low. Closing under this level indicates more drops ahead. Technically, the pair is located deep in the seller's territory, so EUR/USD may approach 1.17 and 1.16 psychological levels.

You should be careful today as the Eurozone, German, and the US high-impact data could shake the price. The German Flash Manufacturing PMI may drop from 60.7 to 60.4, while the Flash Services PMI is expected to increase from 45.7 to 46.4 points.

Furthermore, Eurozone Flash Manufacturing PMI could decrease from 57.9 to 57.5 signaling the expansion slowdown, while the Flash Services PMI could remain deep in the contraction territory, the specialists bet on a rise up to 46.1 points.

On the other hand, the US Flash Manufacturing PMI, Flash Services PMI, Durable Goods Orders, and the Core Durable Goods Orders could support USD's growth, appreciation, if the figures come in line with expectations, or better.

EUR/USD Extends Its Correction!

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EUR/USD escaped from the minor ascending pitchfork's body confirming a deeper drop. The price retested the major descending pitchfork's median line (ML) and now it looks to trade lower.

Is traded below the S1 (1.1853) level and under 1.1835 lower low. Closing below this level and registering new lower low signals a drop towards 78.6% or lower to 88.6% levels. Actually, the aggressive breakdown through the lower median line (lml) indicates a bearish momentum with a first downside target at the first warning line (wl1).

Trading Tips & Forecast!

The aggressive drop below the lower median line (lml), 61.8%, and through the S1 (1.1853) represent a short signal. The S3 (1.1738) and the S4 (1.1671) could be used as downside targets.

The material has been provided by InstaForex Company - www.instaforex.com

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