The EUR/USD pair was trading at 1.0242 at the time of writing. After its massive drop, it has tried to rebound, but the bias remains bearish as the Dollar Index is bullish. Minor rebounds could bring us new short opportunities.
Fundamentally, the German PPI dropped by 4.2% even if the traders expected a 0.9% growth. Tomorrow, the Eurozone is to release the Current Account and Consumer Confidence, while the US publishes the Richmond Manufacturing Index. On Wednesday, the FOMC Meeting Minutes represent a high-impact event.
EUR/USD Minor Rebound?
Technically, the EUR/USD pair extended its sell-off after making a valid breakdown below 1.0305. Now, it has found support right below the weekly S1 (1.0240). As long as it stays below 1.0305 and under the downtrend line, the bias remains bearish.
The price action signaled that the leg higher ended after failing to make a new higher high or to stay above the median line (ml).
EUR/USD Forecast!
A new lower low, dropping and closing below 1.0226 activates more declines and brings short opportunities. The channel's downside line and the lower median line (lml) represent downside targets.
