EUR/USD plunged in the last hours and now is almost to close a huge bearish candle which signals strong sellers. The pair has increased a little right after the ECB, but the buyers weren't strong enough to keep the rate higher around 1.1830 today's high.
As you already know, the European Central Bank maintained its monetary policy unchanged today. EUR/USD plunges on dovish ECB Press Conference. USD is strongly bullish versus the Euro even if the US Unemployment Claims indicator was reported at 419K versus 350K expected.
The Euro was punished also by the Euro-zone Consumer Confidence dropped from -3 to -4 points.
EUR/USD False Breakout!
EUR/USD is traded at 1.1762 at the time of writing and is almost to reach the S1 (1.1755) level. The pair could close the current bearish candle around these levels printing a major false breakout with great separation above the downtrend line and through the weekly pivot point of 1.1817.
It has failed once again to stabilize above the 50% Fibonacci line of the descending pitchfork signaling a deeper drop. Registering a downside breakout from the current pattern indicates a sharp drop.
The median line (ML) of the major descending pitchfork is seen as a major downside target. In the short term, it's trapped between the weekly pivot point and the S1.
Forecast!
The current candle signal that EUR/USD may drop deeper at least until the 1.1700 psychological level.
The material has been provided by InstaForex Company - www.instaforex.com