The EUR/USD pair resumed its downside movement today but now it has reached a strong confluence area representing a downside obstacle. So, we cannot exclude a rebound. It stands at 0.9572 at the time of writing above the 0.9535 daily low.
Technically, the bias remains bearish despite minor rebounds. The pair could rebound only if the DXY drops. The Euro remains under pressure after the German Gfk Consumer Climate was reported at -42.5 points versus -38.9 expected.
Later, the US data could have an impact in the short term. The Goods Trade Balance could increase from -90.2B to -88.9B, Prelim Wholesale Inventories may report a 0.4% growth, while the Pending Home Sales indicator is expected to register a 0.9% drop.
EUR/USD Rebound In Cards!The EUR/USD pair maintains a bearish bias as long as it stays under the downtrend line. The 0.9606 stands as a static resistance. Technically, the sell-off was stopped by the confluence area formed at the intersection between the warning line (wl1) with the R1 (0.9550).
After the false breakdowns, we cannot exclude a rebound. The rate could approach and reach the downtrend line.
EUR/USD Outlook!Staying below the downtrend line and making a valid breakdown below 0.9535 activates more declines and brings short opportunities.
Only a valid breakout above the downtrend lineinvalidates the downside scenario and signals a larger rebound.