The EUR/USD pair crashed after reaching 1.0736 today's high. Now, it was trading at 1.0603. It has turned to the downside as the Dollar Index has managed to rebound and recover after its sell-off.
Fundamentally, the USD tried to take the lead after the FOMC. Today, the SNB, BOE, and ECB had a big impact as well. As you already know, the ECB increased the Main Refinancing Rate from 2.00% to 2.50% as expected. On the other hand, the US reported mixed data. Retail Sales dropped by 0.6% more versus the 0.2% drop expected, Core Retail Sales reported a 0.2% drop even if the specialists expected a 0.2% growth, while Empire State Manufacturing Index came in at -11.2 points compared to -1.1 points expected.
Tomorrow, the US and Eurozone manufacturing and services data could more the markets and could have a big impact.
EUR/USD Challenges 1.0594 Key Support!
EUR/USD failed once again to stay above the R2 (1.0680) and now it challenges the R1 (1.0600), the uptrend line, and the 1.0594.
Technically, the price action signaled exhausted buyers after failing to stay above the 1.0700 psychological level. Still, a significant downside movement needs confirmation.
EUR/USD Forecast!
A new lower low, dropping and closing below the 1.0592 daily low may announce more declines at least towards the weekly pivot point of 1.0520. This is seen as a short opportunity. The 1.0481 - 1.0496 area represent a potential downside target.
