The EUR/USD pair plunged after failing to take out the 1.0923 resistance. Now, it's trading at 1.0844 level at the time of writing. The price crashed as the Dollar Index has managed to rebound and recover after its short-term correction.
Today, the fundamentals could move the price. In the short term, the Dollar Index seems overbought, a new downside movement could force the USD to depreciate. Later, the German Flash Manufacturing PMI is expected at 54.6 points, while the German Flash Services PMI could drop from 56.1 to 55.4 points. The Euro-zone Flash Manufacturing PMI and the Flash Services PMI indicators are expected to drop compared to the last reporting period.
On the other hand, the US Flash Services PMI is expected at 58.0 points, while the Flash Manufacturing PMI could drop from 58.8 to 58.1 points.
EUR/USD Temporary Drop?
As you can see on the H4 chart, EUR/USD resumed its rebound after escaping from the down channel pattern. It has found resistance at the 38.2% (1.0920) and now is traded on the weekly pivot point (1.0830), below the 23.6%.
In the short term, it could move somehow sideways between 1.0805 and 1.0923 levels. The sell-off could be over soon, 1.0805, and the ascending pitchfork's lower median line (LML) represents strong downside obstacles.
EUR/USD Outlook!
Testing and retesting 1.0805 and the lower median line (LML), registering false breakdowns may announce a new bullish momentum. This scenario could bring new buying opportunities.
Dropping and closing below these levels could announce more declines.
