The EUR/USD pair rebounded in the short term as the Dollar Index was into a corrective phase. Still, the currency pair could drop anytime again if the DXY starts increasing again. The current bounce back could represent a continuation pattern.
Yesterday, the USD received a hit from the US Unemployment Claims indicator which reported worse than expected data. Today, the German PPI is expected to report a 2.0% growth versus 2.3% in the previous reporting period, while the Euro-zone Current Account could increase from 13.4B to 16.2B.
The Dollar Index is trapped within a down channel. Canada's retail sales data could have a strong impact on the DXY later today, so you have to be careful.
EUR/USD Near Resistance!
EUR/USD has found support on the descending pitchfork's lower median line (LML) and now it challenges the 23.6% retracement level. After ignoring the descending pitchfork's inside sliding line (SL), EUR/USD could approach and reach the median line (ML) which stands as a dynamic resistance.
A bearish pattern, a false breakout around this dynamic obstacle could signal that the rebound is over and that the pair could turn to the downside.
EUR/USD Outlook!
The current rebound was natural after its massive drop. A false breakout through the descending pitchfork's median line (ML) or any other bearish pattern could signal that the EUR/USD pair could drop again.
On the lower timeframes, this could be an up channel, escaping from this pattern could bring new short opportunities. A larger upwards movement could be activated by a valid breakout above the median line (ML).
