The EUR/USD pair rebounds only because the Dollar Index dropped a little. The DXY could test and retest the near-term downside obstacles before resuming its growth. The index is bullish but it still needs support from the US economy. Technically, the pair seems undecided, it's ranging around the 1.0000 psychological level.
Today, the German Trade Balance was reported at 5.4B versus 4.6B expected, while the Euro-zone PPI rose by 4.0% versus 2.5% expected. Later, the US data could really shake the markets.
The NFP could be reported at 295K in August, Unemployment Rate is expected to remain at 3.5%, while the Average Hourly Earnings could report a 0.4% growth. These are seen as high-impact indicators, anything could happen, that's why you have to be careful.
EUR/USD Sideways Movement!
EUR/USD rallied after failing to reach the 0.9899 lower low. It has climbed as much as 1.0017 where it has found resistance. As you can see, it has failed to stabilize above the 1.0000 psychological level and above the immediate downtrend line.
Staying below parity and under the downtrend line could signal a new sell-off. 0.9980 represents the immediate downside obstacle. EUR/USD could register sharp movements in both directions after the US data dump.
EUR/USD Forecast!
The currency pair is trapped between 1.0018 and 0.9899 again. False breakouts through the downtrend line could bring new short opportunities.
