EUR/USD is trading in the red at 1.2068 and it could activate a sell-off soon. The pair should resume its corrective phase if the Dollar Index increases further. Technically, the price is challenging a static support area, dropping and stabilizing below it suggests a broader downside movement.
Personally, I believe that the USD could appreciate versus its rivals ahead of the US NFP, Unemployment Rate, and Average Hourly Earnings data published on Friday. USDX is strongly bullish in the short term. Stabilizing above the 91.00 area could lead to a larger upwards movement.
EUR/USD In The Seller's Territory!
EUR/USD tries to take out the support represented by the 38.2% retracement level and through the S1 (1.2066) level. Closing below these levels, registering a new lower low, signals further drops.
The S2 (1.2000) level and the descending pitchfork's lower median line (LML) could be used as immediate downside targets, obstacles. I've told you in my previous analyses that EUR/USD should drop deeper if it stabilizes below the ascending pitchfork's lower median line (lml) and if it drops below the 38.2% retracement level, critical static support.
Forecast & Tips!
Sell it if EUR/USD closes a bearish H4 candle below 1.2053 former low. The 1.20 and 1.19 psychological levels could be used as downside targets.
