The EUR/USD pair plunged after failing to take out the 1.1121 static resistance. Now, it's trading at the 1.0987 level after ignoring the 1.1 psychological level which represented as a downside obstacle. DXY's rally boosted the USD.
As you already know, the currency pair started to drop after the hawkish FOMC. The FED is expected to increase the Federal Funds Rate six more times during the year. Yesterday, the German PPI rose by 1.4% less compared to the 1.8% expected. The USD was boosted by Fed Chair Powell Speaks yesterday.
Later, the Eurozone Current Account is expected at 24.3B versus 22.6B in the previous reporting period. Furthermore, ECB President Lagarde and FOMC members' speeches could bring more action.
EUR/USD Swing Higher Is Over!
EUR/USD found strong resistance after reaching 1.1121 and now it has plunged. It has ignored the 1.1 key level and the uptrend line signaling more declines. Still, after its sell-off, the rate could try to come back to test and retest the broken uptrend line before resuming its sell-off.
The current breakdown signaled a deeper drop. The pair registered only a temporary rebound, the bias remains bearish. Technically, the up channel is seen as a bearish pattern.
EUR/USD Outlook!
The breakdown could activate a larger drop. A temporary rebound, testing, and retesting of the broken uptrend line and the 1.1 could bring new selling opportunities. The descending pitchfork's median line (ML) and the S1 (1.0921) are seen as immediate downside targets.
