EUR/USD was trading in the green at 1.0212 on the H1 chart at the time of writing. In the short term, the currency pair rebounded as the Dollar Index was in a corrective phase. Now, the price action signaled that the swing higher could be over. Still, we need confirmation.
Fundamentally, the Eurozone data came in worse than expected. The Current Account came in at -4.5B versus 4.5B expected, while the German PPI rose by 0.6% compared to 1.6% growth expected. Later, the Consumer Confidence is expected at -25 points versus -24 in the previous reporting period.
On the other hand, the US Existing Home Sales indicator is expected to drop from 5.41M to 5.37M.
EUR/USD Uptrendline Violated!
As you can see on the H1 chart, the EUR/USD pair found resistance at around the 1.0269 level. It has registered only a false breakout above this upside obstacle in the last attempt and through the upper median line (uml) of the descending pitchfork signaling exhausted buyers.
Now, it has dropped below the uptrend line but the price could come back to test and retest it before dropping deeper. The 1.0191 - 1.0173 area stands as a critical zone. The median line (ml) stands as a dynamic support.
EUR/USD Outlook!
A new lower low, dropping and closing below 1.0173 could activate a downside movement and bring new selling opportunities with a first downside target at the lower median line (lml).
