The EUR/USD pair move sideways in the short term as the Dollar Index moves in a range as well. Technically, the current range could bring us great trading opportunities. The currency pair seems undecided, that's why it could extend its range. It's traded at 1.0987 at the time of writing.
Fundamentally, the Euro slipped lower also because the German ifo Business Climate was reported at 90.8 points below 94.2 expected and compared to 98.5 in the previous reporting period. On the other hand, the USD was punished by the US data as well today. The Revised UoM Consumer Sentiment and the Pending Home Sales reported worse than expected data, that's why the currency pair could continue to move sideways.
EUR/USD Challenges 1.1 Psychological Level!
As you can see on the H4 chart, the EUR/USD pair failed to retest the broken uptrend line in today's attempt signaling exhausted buyers. It has found resistance at the weekly pivot point of 1.1030. In the short term, it's trapped between the pivot point and the 1.0960.
Escaping from this pattern could bring also a clear direction. Still, you have to be careful as the rate could register only fasle breakouts from this pattern, and then move in the opposite direction.
EUR/USD Outlook!
In the short term, the bias remains bearish. The downside pressure remains high after escaping from the up-channel pattern. A valid breakdown from the current range, dropping and closing below the 1.0960 could activate a deeper drop. This scenario could bring new short opportunities with the first potential downside target at the median line (ML).
