The EUR/USD pair crashed again in the last hours, erasing today's gains as the DXY rebounded. It's trading at 1.0910 at the time of writing and it seems very heavy in the short term. Technically, the price action signaled an overbought, so a downside movement is in cards.
Fundamentally, the USD was lifted by the US data earlier today. Housing Starts came in at 1.63M versus 140M expected, while Building Permits was reported at 1.49M compared to 1.42M forecasts. On the contrary, the Eurozone Current Account and German PPI came in worse than expected.
EUR/USD Overbought!
Technically, the EUR/USD pair tried to rebound after reaching 1.0907 today's low but it has failed to approach and reach the upper median line (uml) of the descending pitchfork which represents an upside obstacle.
After its strong upwards movement, a corrective phase is natural and expected. Still, we need confirmation before taking action.
EUR/USD Forecast!
A bearish closure below 1.0907 opens the door for a deeper drop at least towards the weekly pivot point of 1.0880. This is seen as a selling signal. A larger drop could be announced after taking out the pivot point.
