The EUR/USD pair is falling like a rock in the short term and it seems unstoppable. USD rallied as the Dollar Index managed to jump towards new highs. DXY's further growth should help the greenback to dominate the currency market.
Fundamentally, the eurozone Final CPI and Final Core CPI met expectations. On the other hand, the US data came in mixed. The Unemployment Claims indicator was reported at 250K in the last week, below the expected 265K. Philly Fed Manufacturing Index was reported at 6.2% versus -4.9% expected, while CB Leading Index dropped by 0.4% compared to 0.5% expected. Only the Existing Home Sales indicator came in worse than expected at 4.81M below 4.87M forecasted.
EUR/USD Strong Sellers
From the technical point of view, EUR/USD found resistance at 1.0194 and now it has dropped below the median line (ml) and under 1.0119 which represented downside obstacles.
As we know from my last analysis, the currency pair is under downside pressure after failing to stay above 1.0269. In the short term, it will try to rebound and recover after its last downside momentum.
EUR/USD Forecast
The current breakdown through 1.0119 may activate more declines, that is why it is seen as a short opportunity. Also, coming back to test and retest the 1.0119 level and the median line (ml) could offer new selling signals. The S2 (1.0050) and the lower median line (lml) are seen as downside obstacles.
