The EUR/USD pair is trading in the red at 1.0626 at the time of writing. The bias is bearish, so further drop is natural. The Dollar Index remains bullish, so further growth should boost the greenback.
The USD resumed its growth after the Flash Manufacturing PMI and Flash Services PMI came in better than expected yesterday. Today, the German ifo Business Climate came in at 91.1 points matching expectations.
Fundamentally, the FOMC Meeting Minutes represents the most important event of the day. A hawkish report could force the currency pair to drop deeper.
EUR/USD Bearish Bias Intact!
Technically, the EUR/USD pair tested and retested the 1.0655 - 1.0669 area registering only new false breakouts above the downtrend line. As long as it stays below it, the price could approach and reach new lows.
As you can see on the H1 chart, the rate failed to stabilize above the downtrend line in the last attempts signaling strong downside pressure.
EUR/USD Forecast!
The false breakouts announced a deeper drop. The former low of 1.0612 represents the next downside target. Dropping and closing below this level and under S1 (1.0600) activates a deeper drop and is seen as a short signal.
