The EUR/USD pair is trading in the green on the h4 at the 1.0998 level. It continues to stay below 1.1 psychological level but a larger drop is far from being confirmed. In the short term, it moves somehow sideways, so only a new lower low could open the door for a larger drop. Unfortunately for the USD, the Dollar Index retreated a little weakening the greenback.
Fundamentally, the Eurozone and the US reported high-impact economic data today. The Euro received a helping hand from the German and Eurozone figures. The German Flash Services PMI was reported at 55.0 points above 53.6 expected, while the Flash Manufacturing PMI came in at 57.6 points above 55.9 estimates. Furthermore, the Euro-zone Flash Services PMI dropped from 55.5 to 54.8 points but it has failed to reach 54.3 forecasts, while the Flash Manufacturing PMI was reported at 57.0 points above 56.0 expected.
The US Flash Manufacturing PMI and the Flash Services PMI indicator increased unexpectedly signaling further expansion. Also, the Unemployment Claims reported better than expected data. Unfortunately for the USD, Durable Goods Orders and the Core Durable Goods Orders reported worse than expected data.
EUR/USD Minor Range!
EUR/USD moves somehow sideways between the weekly pivot point of 1.1029 and 1.0960 levels. After dropping below the uptrend line, the price was somehow expected to develop a new leg down.
As you can see, the rate retested the broken uptrend line. Still, only a new lower low, dropping and closing below 1.0960 could really activate a strong downside movement.
EUR/USD Outlook!
As long as it stays below the weekly pivot point 1.1029, EUR/USD could still resume its downside movement. A valid breakdown below 1.0960 could activate a larger drop and could bring new short opportunities.
