The EUR/USD pair crashed in the short term and now is located at 1.0547 at the time of writing. The downside pressure is strong as the Dollar Index rallied. Technically, the bias remains bearish despite the last rebound, so more declines are natural.
Fundamentally, the USD dominates the currency market as the US reported higher inflation in September. The CPI m/m and CPI y/y came in above expectations, boosting the greenback. Tomorrow, the US Prelim UoM Consumer Sentiment could bring more action.
EUR/USD Challenges The Pivot Point!
From the technical point of view, the EUR/USD pair found resistance at the R1 (1.0640) and now it has turned to the downside.
As you can see on the H1 chart, the rate registered only false breakouts through the major downtrend line signaling exhausted buyers. Now, it has dropped below the lower median line (lml) and it is challenging the weekly pivot point of 1.0540.
EUR/USD Forecast!
A bearish closure below the pivot point of 1.0540 activates more declines and is seen as a short opportunity.
