The EUR/USD pair is trading in the red at 1.0810 on the H4 chart. Technically, the bias remains bearish. The price action signaled that the sellers are exhausted but it's premature to talk about a new leg higher. In the short term, EUR/USD increased a little as the Dollar Index dropped.
Fundamentally, the German PPI registered a 4.9% growth versus 2.7% expected and compared to 1.4% in the previous reporting period. Later, Eurozone's Industrial Production is expected to register a 0.8% growth, while the Trade Balance could come in at -6.5B.
On the other hand, the US Existing Home Sales indicator is expected to drop from 6.02M to 5.78M.
EUR/USD Bearish Bias Intact!
EUR/USD is trading right below the downtrend line. The bias remains bearish as long as it stays within the down-channel pattern. The price action and the RSI signaled a bullish divergence. Still, only a valid breakout above the downtrend line may signal an upside movement.
Registering only false breakouts above the downtrend line could announce a new sell-off. A larger downside movement could be activated by a new lower low, if the rate drops and closes below 1.0757.
EUR/USD Outlook!
A false breakout above the downtrend line or a major bearish engulfing could bring new short opportunities. Also, a valid breakdown below 1.0757 could help the sellers to catch a broader drop.
A valid breakout above the downtrend line, jumping and stabilizing above it could bring buying opportunities.
