The EUR/USD pair is trading at 1.0616 at the time of writing. The price action signaled that the upward movement could be over and that sellers could take the lead. You knew from yesterday's analysis that the price could develop a new sell-off in the short term.
Surprisingly or not, the pair seems very heavy even if the Eurozone data came in better than expected while the US reported poor figures. The German Flash Manufacturing PMI came in at 47.4 above the 46.3 expected, the German Flash Services PMI jumped from 46.1 points to 49.0 points, Eurozone Flash Manufacturing PMI was reported at 47.8 above 47.1 expected, while Eurozone Flash Services PMI was reported at 49.1 above 48.5 estimated. Despite better-than-expected data, the German and Eurozone services and manufacturing sectors remain in the contraction zone.
On the other hand, the US Flash Services PMI and Flash Manufacturing PMI came in worse than expected and signaling further contraction.
EUR/USD Exit Its Range Soon?
Technically, it has tried to rebound but it has found resistance at 1.0662. Now, it has dropped below the lower median line (lml) of the ascending pitchfork, representing dynamic support.
It has retested the broken line and now it is challenging 1.0610 and is almost to reach the 1.0594 static support.
EUR/USD Forecast!
A valid breakdown below 1.0594 activates more declines and brings new selling opportunities.
