The EUR/USD pair is trading in the red at 1.0936 at the time of writing and it seems determined to hit new lows. A potential new sell-off could be natural as the Dollar Index turned to the upside. Technically, the currency pair escaped from a bearish pattern, signaling exhausted buyers.
Fundamentally, the USD received strong support from the US economy. The New Home Sales, CB Consumer Confidence, Durable Goods Orders, Core Durable Goods Orders, and Richmond Manufacturing Index came in better than expected yesterday.
Today, the Eurozone data came in worse than expected. Later, the US is to release the Goods Trade Balance and Prelim Wholesale Inventories. Don't forget that the Fed Chair Powell Speaks could bring high action later today.
EUR/USD 1.0935 Key Obstacle!
EURUSD retested the major uptrend line and now it has turned to the downside. As you can see on the H1 chart, the rate escaped from the minot up channel pattern signaling a new sell-off.
From a technical point of view, the flag pattern could bring new short opportunities. Now, it challenges the 1.0942 and 1.0935 support levels.
EUR/USD Outlook!
A bearish closure below 1.0935 activates more declines and is seen as a new selling signal. A valid breakdown below the weekly pivot point of 1.0920 should announce a larger drop.
