EUR/USD continues to be somehow undecided as long as USDX moves sideways in the short term. The pair should definitely resume its corrective phase if the US Dollar Index resumes its bullish reversal.
The USD could take full control if the US data continues to come in better than expected during the week and if the FOMC members have some hawkish remarks in the coming days.
Today, the US is to release the Existing Home Sales which could drop from 6.69M to 6.55M in February. Positive data could help the greenback to appreciate again.
EUR/USD Gap Down!EUR/USD has found support on the 61.8% retracement level and right on the ascending pitchfork's lower median line (lml) after opening with a gap down. It could come to test and retest the pivot point (1.1921) and the descending pitchfork's median line (ML).
Dropping and stabilizing under 61.8% retracement level and below 1.1870 today's low activates a sell-off. You already know from my analyses posted last week, a valid breakdown from the minor ascending pitchfork's body signals a larger correction ahead.
Forecast & Tips!Sell a new lower low, a bearish closure under 1.1870 with a potential downside target at the 1.17 psychological level.
Buy a bullish fly and stabilization above 1.2 psychological level with potential upside targets at 1.21, 1.22, and 1.23 levels.