EUR/USD yesterday's drop has signaled once again that the selling pressure is still high in the short term. The US data could be crucial for the dollar later today, some good figures could push EUR/USD in the seller's territory.
The pair was rejected by the near-term resistance again, but only another lower low, a drop below the 1.1167 will validate a significant bearish movement. You should keep an eye on the economic calendar as the Flash GDP, Unemployment Claims, Durable Goods Orders, and the Core Durable Orders will bring high volatility.
EUR/USD is still undecided, is trapped between critical levels, a valid breakout in any direction will confirm the upcoming period direction. As you can see, EUR/USD has registered another false breakout above the upper median line (UML) of the descending pitchfork signaling a bearish pressure.
Still, only a valid breakdown below the 1.1200 psychological level will really confirm a further decline towards the 1.1 level. On the other hand, worse data from the US could send the pair higher again, a valid breakout above the UML will suggest buying.
- EUR/USD TRADING TIPS
Short if EUR/USD will drop and close below the 1.1167 level, the next downside target is seen at the monthly Pivot Point (1.1005) level. A buying opportunity will appear if the pair will make a valid breakout above the upper median line (UML) and if it will close above the 1.1348 former high.
Another leg higher will have as a target the R3 (1.1622) level, so I really believe that we'll have a clear direction soon.
