The EUR/USD pair rallied in the short term as the Dollar Index dropped a little after its strong rally. It was trading at 1.0070 at the time of writing. Technically, the bias remains bearish, the current rebound could be only a temporary one and it could bring new short opportunities.
Fundamentally, the US data came in mixed today. The Retail Sales indicator rose by 1.0% versus 0.9% expected, Core Retail Sales surged by 1.0% compared to 0.7% forecasted, Prelim UoM Consumer Sentiment came in higher at 51.1 above 49.0 expected, while the Empire State Manufacturing Index was reported at 11.1 points above -2.1 estimates. Unfortunately for the USD, Business Inventories, Import Prices, Capacity Utilization Rate, and Industrial Production came in worse than expected. On the other hand, the Euro-zone Trade Balance was reported at -26.0B above -34.8B.
EUR/USD Still Bearish!
Its failure to stabilize below the 1.0000 psychological level signaled exhausted sellers and a potential rebound. Now, it has reached the 1.0071 static resistance and the downtrend line which represent upside obstacles.
As long as it stays under these levels, the rate maintains a bearish bias and it could drop anytime again.
EUR/USD Outlook!
Testing and retesting 1.0071 and the downtrend line, registering only false breakouts above these obstacles may announce a new sell-off. A bearish pattern could bring new short opportunities.
A valid breakout above the 1.0084 and above the downtrend line may signal further growth in the short term and it could bring short-term long signals.
