The EUR/USD pair is trading at 1.0554 at the time of writing. It's struggling to rebound after its massive drop. Still, if the DXY continues to grow, the USD should appreciate versus its rivals.
Fundamentally, the greenback is bullish after the US Core PCE Price Index, Personal Spending, New Home Sales, and Revised UoM Consumer Sentiment came in better than expected on Friday.
The US data could have a big impact later today. Pending Home Sales, Durable Goods Orders, and Core Durable Goods Orders could show worse data compared to the previous reporting period.
EUR/USD Down Channel Intact!
Technically, the bias remains bearish as long as the rate stays below the downtrend line. After its strong drop, a temporary rebound is natural. The rate could come back to test and retest the near-term resistance levels before dropping deeper.
The 1.0536 low stands as a critical downside obstacle. On the other hand, the downtrend line and the 1.0577 - 1.0585 zone represent upside obstacles.
EUR/USD Outlook!
As long as it stays below the downtrend line, the EUR/USD pair could drop toward new lows. A bearish closure below 1.0536 activates more declines and is seen as a short opportunity.
