EUR/USD dropped as much as 0.9730 today where it has found support. Now, it has rebounded, trying to recover but the bias remains bearish. It was trading at 0.9758 at the time of writing. In the short term, the rate could come back to test and retest the near-term resistance levels before dropping deeper.
Fundamentally, the USD edged higher after the FOMC. Today, the Euro-zone data came in mixed but it didn't have a significant impact. On the other hand, the US reported mixed data as well. The ISM Services PMI came in at 54.4 points versus 55.5 expected, Factory Orders reported only a 0.3% growth versus the 0.4% estimated, while Trade Balance was reported lower at -73.3B. Only the Unemployment Claims came in better than expected.
Tomorrow, the price will be driven by fundamentals again as the US is to release the Non-Farm Payrolls, Unemployment Rate, and Average Hourly Earnings.
EUR/USD Temporary Rebound!
Technically, the pair extended its drop after registering a false breakout with great separation through the downtrend line. It has dropped below the near-term uptrend line, signaling strong sellers.
Now, it has rebounded but the bias remains bearish as long as it stays under the S1 (0.9820) and below the downtrend line. Coming back and stabilizing below the second uptrend line signals more declines.
EUR/USD Outlook!
Dropping, closing, and stabilizing below 0.9730 validates a downside continuation. This scenario could represent a new selling opportunity.
