The EUR/USD pair crashed in the short term as the DXY rebounded after its amazing drop. Still, the bias remains bullish, the rate could only test and retest the immediate support levels before jumping higher.
The greenback registered a strong growth ahead of the US economic data. The New Home Sales, HPI, and S&P/CS Composite-20 HPI came in better than expected. On the other hand, CB Consumer Confidence and Richmond Manufacturing Index came in worse than expected. Tomorrow, the US Durable Goods Orders and Core Durable Good Orders represent important indicators. The USD needs further support from the US economy to be able to extend its growth.
EUR/USD Sell-Off!Technically, the currency pair seems very heavy after failing to stay above the upper median line (uml). It has ignored the 1.0982 static support and now it challenges the uptrend line. This represents a dynamic support.
In the short term, a sell-off was expected. Staying above the uptrend line and above the weekly pivot point of 1.0970 may announce that the downwards movement is over.
EUR/USD Forecast!False breakdowns below the uptrend line should announce a new bullish momentum. This scenario is seen as a buying opportunity. A valid breakdown below this dynamic support activates more declines towards the median line (ml).