The EUR/USD pair rallied in the short term as the Dollar Index dropped deeper. Now, is located at 1.0947 at the time of writing and it maintains a bullish bias. Still, after such an impressive growth, the price action signaled exhausted buyers. Though, a sell-off needs confirmation, that's why it's prematura to talk about it.
The USD depreciated as the US manufacturing sector confirmed contraction again on Friday. Today, the New Home Sales indicator could announce a potential drop from 759K to 724K. Poor data could weaken the greenback.
EUR/USD Overbought Signs!
Technically, the EUR/USD pair found support on the 50% (1.0861) retracement level and now it has reached the 61.8% (1.0959) retracement level. This represents a static upside obstacle.
Also, the former high of 1.0965 represents a key resistance level. On the contrary, the immediate low of 1.0927 and the uptrend line represent downside obstacles.
EUR/USD Outlook!
A bearish closure below 1.0927 and under the downtrend line is seen as a short opportunity.
A new higher high, jumping and closing above 1.0965 activates further growth.
