The EUR/USD pair was trading at 1.0453 at the time of writing above today's low of 1.0433. The price tries to rebound as the Dollar Index dropped a little trying to retest the immediate support levels. After its massive drop, a rebound is natural. It is expected to come back to test and retest the near-term resistance levels before resuming its drop.
Today, the fundamentals could drive the market, that's why you need to be careful. The Eurozone Unemployment Rate could remain steady at 6.8%, German Unemployment Change is expected at -5K below -4K in the previous reporting period, German Retail Sales could report a 1.1% growth, while the German Import Prices could announce a 1.6% growth.
On the other hand, the US is to release high-impact data, that's why you need to be careful. The Core PCE Price Index may report a 0.4% growth, while the Unemployment Claims may drop from 229K to 228K in the previous week. Personal Income, Personal Spending, and the Chicago PMI could be released as well.
EUR/USD Reached Strong Downside Target!
You knew from my previous analysis that the EUR/USD pair could extend its sell-off after dropping and closing below the 1.0486 previous low. I've told you that the rate could approach and reach the median line (ml) which represents a downside obstacle.
As you can see on the H1 chart, EUR/USD dropped below this dynamic support signaling strong sellers and a potential downside continuation. Now, it has failed to stabilize below the median line (ml) signaling exhausted sellers. It could come back to test and retest the 1.0470 key static resistance before dropping deeper.
EUR/USD Prediction!
As long as it stays below 1.0470, the bias remains bearish. Testing and retesting this level, registering only false breakouts could bring new short opportunities. Also, a new lower low, dropping and closing below 1.0433 could activate more declines.
