EUR/USD drops like a rock at the time of writing as the Dollar Index rallies. As you already know from my previous analyses, we have a strong negative correlation between the DXY and EUR/USD. The index invalidated a larger downside movement signaling an upside continuation. DXY’s further growth
The pair dropped even if the German Retail Sales registered a 0.6% growth versus a 0.2% drop expected, while the German Unemployment Change was reported at -23K below -15K expected. Later today, the US is to release its ISM Manufacturing PMI which could be reported at 60.0 points and the JOLTS Job Openings. Positive US figures could boost the USD.
EUR/USD Technical Analysis!
EUR/USD increased a little in the short term, but the bias remains bearish. Now, it challenges the outside sliding line (SL). Making a valid breakdown below it could announce more declines.
Technically, its failure to reach and retest the median line (ML) of the ascending pitchfork or to make a valid breakout above the 1.1374 announced strong sellers and potential downside continuation.
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