EUR/USD is trading at 1.1926 continuing to be undecided. It moves somehow sideways in the short term even if the bias is bearish. The pair should drop further if the US Dollar Index will manage to resume its upside reversal.
USDX has decreased a little in the short term but it could jump higher after yesterday's rally. EUR/USD could lose altitude despite the increase registered by the Unemployment Claims from 725K to 770K, even though analysts expected a drop to 704K.
The German PPI registered only a 0.7% growth compared to 0.8% expected, so Euro could lose ground versus its rivals.
EUR/USD Could Drop Anytime Again!
EUR/USD stands under the major descending pitchfork's median line (ML) and below the Pivot Point (1.1924) after failing to stabilize above the 50% retracement level. Dropping and stabilizing under the 61.8% retracement level and below the ascending pitchfork's lower median line (lml) signals a new sell-off.
Technically, only a false breakdown with great separation below the 61.8% and through the lower median line (lml), or a major bullish engulfing on these levels followed by an aggressive jump above 1.2 could really invalidate a larger corrective phase.
Trading Tips & Forecast!
Sell a valid breakdown below the ascending pitchfork's lower median line (lml) and a bearish closure below the S1 (1.1860). This scenario signals a further decline towards the S2 (1.1770) and S3 (1.1705) levels.
