EUR/USD: bearish continuation

The EUR/USD pair crashed in the last hours and now is trading at 1.0698 at the time of writing. The bias remains bearish, so further drop could be natural despite temporary rebounds. The greenback was expected to take the lead after the US CB Consumer Confidence was reported at 102.3 points above 99.1 points estimated.

Today, the fundamentals should be decisive again. First of all, the German Prelim CPI may report a 0.2% growth, while German Unemployment Change is expected at 14K versus 24K in the previous reporting period. Later, the US JOLTS Job Openings could drop to 9.41M, while Chicago PMI is expected to drop to 47.1 points. Poor US data could weaken the greenback.

EUR/USD Sell-Off!

As you can see on the H1 chart, the rate tested and retested the downtrend line, finding strong resistance. Now, it has turned to the downside again. The aggressive breakdown below the 1.0718 was seen as a potential selling opportunity.

The lower median line (lml) represents the first downside target. The weekly S1 (1.0670) represents a static support.

EUR/USD Outlook!

The bias is bearish, so the currency pair could approach and reach at least the lower median line (lml). A larger downside movement could be activated by a bearish closure below the weekly S1 (1.0670). This represents a selling opportunity. The S2 (1.0620) represents a new downside target.