EUR/USD increased a little but the pressure remains high. It's traded at 1.1472 level above 1.1453 today's low. The currency pair tries to recover as the Dollar Index seems exhausted after reaching 95.09. DXY could slip lower to test and retest the immediate support levels trying to attract more bullish energy if it fails to stabilize above the 95.00 psychological level.
The bias remains bearish, so a temporary rebound could bring new short opportunities. Tomorrow, the Euro-zone Industrial Production indicator could report a 0.5% drop versus 1.6% drop in the previous reporting period, while the German WPI could register a 0.6% growth.
On the other hand, the US JOLTS Job Openings could be reported lower at 10.02M versus 10.44M in the previous reporting period. However, the Prelim UoM Consumer Sentiment could increase from 71.7 to 72.5 points. This could be good for USD.
EUR/USD Minor Rebound!
I've told you in my previous analysis that the EUR/USD pair could resume its downwards movement if it drops and closes below 1.1515 weekly S1. Now it stands on the weekly S2 (1.1462).
As you already know from my analyses, the descending pitchfork's median line (ML) could attract the rate after failing to reach and retest the upper median line (UML). In the short term, we cannot exclude a temporary rebound from the median line and after the current sell-off.
EUR/USD Outlook!
Dropping and closing below the weekly S1 (1.1515) represented a selling opportunity with a potential target at the median line (ML). Now, it's risky to go short only because the price could find support at the median line.
A temporary rebound could help the sellers to catch a new downwards movement. You should know that dropping and stabilizing below the median line (ML) could confirm a larger drop.
The material has been provided by InstaForex Company - www.instaforex.com