EUR/USD Descending Channel Remains Intact

The EUR/USD pair rallied in the last hours trying to erase some of yesterday's losses. Still, the rebound could be only a temporary one. After a massive drop, a temporary rebound was somehow expected. DXY's retreat pushed the pair higher. Now, it is traded at 1.1218 far above yesterday's low of 1.1106 .

Apart from the geopolitical tensions, the EUR/USD pair could react to the Euro-zone and US downbeat data. The German Final GDP is expected to report a 0.7% drop, while the German Import Prices may report a 1.7% growth. Also, the Eurogroup Meeting could bring high action later.

The US Durable Goods Orders is expected to register a 1.1% growth, Core Durable Goods Orders may report a 0.4% growth, while the Core PCE Price Index could rise by 0.5%.

As you can see on the h-4 chart, the pair registered a false breakout below the descending channel's bottom line and through the pitchfork's lower median line (LML). Technically, the pin bar signaled a potential rebound.

As long as it stays under the descending trendline, below the channel's resistance, EUR/USD could extend its drop. In the short term, the rate could move somehow sideways. It is currently trapped between 1.1482 and 1.1121 levels.

After the current rebound, EUR/USD could return to test and retest the channel's downside line, the lower median line (LML), and the 1.1121 downside obsatcle. We may have a new short opportunity if the quote retests the descending trendline and the area of 1.13.

On the other hand, a new long opportunity could be announced by new false breakouts below the mentioned downside obstacles or by a major bullish pattern around these support levels.