The EUR/USD pair registered a strong growth in the short term and now is trading at 1.0838 at the time of writing. It has climbed as much as 1.0871 today where it has found resistance. Technically, the price action developed a potential bearish formation.
Fundamentally, the USD received support from the US Pending Home Sales data. The economic indicator reported a 0.8% growth versus the 2.9% drop estimated. Tomorrow, the US Final GDP, Unemployment Claims, and the German Prelim CPI are seen as high impact events and should bring more action.
EUR/USD Sellers Could Take The Lead!
From the technical point of view, the EUR/USD pair tested and retested the ascending pitchfork's median line (ml), registering only false breakouts. A valid breakout through this dynamic resistance would have signaled a larger upwards movement.
The price action developed a flag pattern (up channel). This could represent a downside formation.
EUR/USD Outlook!
A new lower low, a bearish closure below 1.0816 activates more declines. This is seen as a bearish signal.
