EUR/USD rebounded as the USDX has slipped lower after yesterday's gap down. The pair could develop a temporary rebound before dropping deeper. The selling pressure remains high as long as the currency pair stays under the 1.17 psychological level.
The US is to release the CB Consumer Confidence indicator which is expected to increase from 84.8 to 90.0 points. A higher increase should boost the greenback and may send EUR/USD down again. The Goods Trade Balance and the Prelim Wholesale Inventories will be released as well. Disappointed traders after these releases could send the pair higher beyond 1.17.
EUR/USD has failed to touch the upper median line (uml) of the descending pitchfork in the last two attempts, so the current rebound is natural. It could challenge 1.17, PP 1.1704, and 1.1753 in the short term.
A rejection from these resistance levels and a false breakout with great separation could bring a selling opportunity. Maybe a temporary rebound was expected after the most recent significant drop.
EUR/USD has rallied as the USDX is declining in the short term. However, the index could retest the 93.81 static support before jumping higher.
- EUR/USD Trading Tips
Sell a new lower low, drop below 1.1611 level, or a false upside breakout above 1.17, 1.1753, and above the first warning line (wl1). The major downside target is seen at 1.1495 level.
Buy from above 1.18 if EUR/USD closes and stabilizes above this psychological level.
