The EUR/USD pair extended its drop and now is located at 1.1192 at the time of writing. DXY's rally forced the USD to appreciate versus its rivals. You knew from my previous analyses that the price action signaled an overbought, so the current sell-off was somehow expected.
Surprisingly or not, the price remains under downside pressure even if the Housing Starts and Building Permits came in worse than expected. Tomorrow, the US Unemployment Claims could jump to 239K from 237K. This represents a high-impact event. Furthermore, the US is to release Existing Home Sales, CB Leading Index, and the Philly Fed Manufacturing Index data as well.
On the other hand, the Eurozone Consumer Confidence, EU Economic Forecasts, Current Account, and German PPI figures should bring life to the EUR/USD pair.
EUR/USD Sell-Off!As you can see on the H1 chart, the EUR/USD pair tested and retested the upper median line (uml), registering false breakouts. Falling to take out this dynamic resistance announced exhausted buyers.
Personally, I've drawn a minor downtrend line, this represents a dynamic resistance. As long as it stays below it, the USD could drag the pair down.
EUR/USD Outlook!Breaking below 1.1204 was seen as a selling opportunity. After its sell-off, the price could try to test and retest 1.1204 and the downtrend line could bring new bearish signals. The weekly pivot point of 1.1140 and the median line (ml) represent potential targets.