The EUR/USD pair crashed after better-than-expected US data was reported yesterday. It's trading at 1.0490 at the time of writing. The downside pressure is high but it remains to see how the price will react after the US data release.
Earlier today, the Eurozone CPI Flash Estimate Came in worse than expected, while Core CPI Flash Estimate and the Retail Sales came in better than expected. Later, the US NFP could be reported at 200K versus 263K in the previous reporting period. Furthermore, the ISM Services PMI, Average Hourly Earnings, and Unemployment Rate data will also be published. The stronger-than-expected data should lift the USD and push the currency pair toward new lows. On the contrary, poor figures could boost the pair.
EUR/USD Fundamentals Should Drive The Price!
Technically, the pair escaped from the minor up-channel pattern signaling a new downside movement. It has ignored the median line (ml), the S2 (1.0550), and the former low of 1.0519 downside obstacles.
Now, it challenges the 1.0489 static support after breaking below the 1.0505 and through the S3 (1.0540).
EUR/USD Forecast!
EUR/USD could extend its sell-off if it stays below 1.0505 and if the US data comes in better than the consensus. A valid breakdown below 1.0489, a new lower low brings new short signals. The lower median line (lml) of the descending pitchfork could attract the rate, this is seen also as a downside target.
