EUR/USD plunged and now it stands at 1.2099 level. The pressure is high so a further drop is imminent. The pair has dropped as the US inflation has come in better than expected. DXY's further growth should push EUR/USD down.
Euro-zone Industrial Production could bring life on EUR/USD later. The FOMC and the US retail sales could bring high volatility during the week.
EUR/USD New Lower Low!
EUR/USD dropped after failing to test and retest the Rising Wedge's support, the uptrend line. The false breakout with great separation above the 1.2201 level signaled a sell-off.
Now it has dropped below the down channel's support. Staying below it could signal a larger drop. The pair has registered a new lower low signaling a corrective phase.
EUR/USD Outlook!
The bias is bearish as long as the price stays below the 23.6% retracement level. Technically, the pair could come back to tets and retest this level before dropping further.
Closing below the 1.2091 level could really activate a potential drop towards 1.2.
