The EUR/USD pair increased a little in the short term. It was trading at 1.0280 at the time of writing. Still, technically, the rebound could be only temporary. The rate could test and retest the near-term resistance levels before dropping deeper.
Fundamentally, the Eurozone Current Account came in at -8.1B below -20.3B while the US Richmond Manufacturing Index was reported at -9 points matching expectations. Tomorrow, the fundamentals could drive the markets. The US and Eurozone manufacturing and services data could have a big impact.
Moreover, the FOMC Meeting Minutes could really shake the markets and could change the sentiment.
EUR/USD Temporary Rebound?
The EUR/USD pair rebounded after its massive drop and it has developed a flag pattern. As long as it stays under the downtrend line and below 1.0305.
The weekly S1 (1.0240) and the 1.0226 former low stands as downside obstacles. Technically, the rate could continue to move sideways in the short term ahead of the high-impact data.
EUR/USD Forecast!
Staying below the upside obstacles and making a new lower low, a valid breakdown below 1.0226 validates more declines and brings new selling opportunities. The weekly S2 (1.0150) is seen as a potential downside target.
