The EUR/USD pair plunged after failing to stabilize in the buyer's territory. Now, it's traded at 1.1253 level and it seems heavy. It has rebounded a little from 1.1234 today's low, but the bias remains bearish. The price could only test and retest the immediate resistance levels before dropping deeper.
The USD could drag the rate down after more hawkish than expected FOMC. Also, on Friday, the Euro was punished by the German ifo Business Climate and the German PPI came in worse than expected.
Today, the Eurozone Current Account is expected to increase from 18.7B to 20.3B. Tomorrow, the German Gfk Consumer Climate and the US Current Account could bring more volatility.
EUR/USD Under Massive Pressure!
The EUR/USD pair failed to stabilize above the downtrend line and now it has managed to slip below the ascending pitchfork's lower median line (lml). As you already know from my previous analyses, I've told you that the pair may resume its downside movement if it drops and stabilizes outside of the ascending pitchfork.
After its failure to reach and retest the 1.1374 static resistance, EUR/USD could come back down towards the 1.12 psychological level. Also, 1.1186 represents a potential downside target.
EUR/USD Prediction!
The EUR/USD pair could test and retest the lower median line (lml), the pivot point 1.1272, and the downtrend line before resuming its downside movement. After its massive drop, a minor rebound is natural.
Dropping and closing below 1.1235 may signal a further drop towards the 1.1186 downside obstacle. A larger downside movement could be validated by a valid breakdown below 1.1186.
As long as it stays under the downtrend line and below 1.1300, EUR/USD could extend its downside movement.
