The pair is trading in the red and it seems determined to approach and reach the near-term support levels after the false breakout above the 1.1200 - 1.1215 resistance area. EUR/USD is trading at 1.1117, the next downside obstacle is seen at 1.1111.
We may see a larger drop if the price closes yesterday's gap up. The USD is driving the price as the USDX has managed to increase again. EUR/USD is trapped within a range, you should wait for a valid breakdown from this pattern before going long or short.
I really hope that we'll have a clear direction on EUR/USD after the US data is released later, the Retail Sales are expected to increase by 0.2%, while the Core Retail Sales could inch up by 0.1%. Industrial Production is expected to expand by 0.4%, the Capacity Utilization Rate could increase from 76.8% to 77.1%, while the Business Inventories could drop by 0.1%.
The EU Economic Summit, German ZEW Economic Sentiment, and the eurozone Economic Sentiment could have a high impact as well, some poor data could send EUR/USD towards fresh new lows.
EUR/USD is moving sideways between the 38.2% and the 61.8% retracement levels, the price drops after it failed to reach the 1.1200 level again. I've said yesterday that we'll have a long opportunity if the price makes a valid breakout above the 1.1200 - 1.1215, above the PP (1.1216) and above the 38.2% retracement level.
I want to remind you that the bearish pressure is high as long as the price is traded within the descending pitchfork's body. Another lower low, a valid breakdown below the 61.8% level will confirm a further drop towards the S1 (1.0938) level and towards the median line (ml).
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You should be careful because the eurozone and the US data will drive the price today, a valid breakdown below the 61.8% will give us a chance to go short on this pair, while a valid breakout above the 1.1215, 38.2% and above the Pivot Point (1.1216) will confirm a bullish movement.
