The EUR/USD pair is trading in the red at 1.0641 at the time of writing. After its strong rally, a short-term retreat is natural. The price climbed as much as 1.0669 even if the US reported positive data on Friday.
Today, the HPI is expected to register a 0.9% drop versus the 0.1% growth in the previous reporting period, Goods Trade Balance could increase from -99.0B to -96.2B, while Prelim Wholesale Inventories is expected to register a 0.4% growth compared to 0.5% growth in the previous reporting period. Tomorrow, the US Pending Home Sales and Richmond Manufacturing Index could move the markets.
EUR/USD 1.0630 As Support!
The EUR/USD pair dropped after failing to stabilize above the 1.0662 key resistance. Now, it is almost to reach the 1.0630 static support. As you already know from my previous analysis, the pair is trapped between the 1.0582 and 1.0662 levels.
After registering a false breakdown below 1.0582 in the last breakdown attempt, EUR/USD was expected to develop a new leg higher. Only escaping from the current range could bring us new opportunities.
EUR/USD Forecast!
The EUR/USD pair could drop deeper if it closes below 1.0630. The weekly pivot point of 1.0620 and 1.0594 are seen as downside obstacles and targets.
A valid breakout above 1.0662, a new higher high is seen as a good long opportunity. A valid breakdown below 1.0582 activates a downside movement and brings new shorts.
