FX.co ★ EUR/USD Attention At Support, DXY At Resistance!

EUR/USD plunged in the short term and now it stands at 1.1715 level above 1.1705 lower low. It remains to see what will really happen as the Dollar Index is traded below the 93.19 static resistance.

A potential drop registered by the Dollar Index should force EUR/USD to increase. Only, DXY's valid breakout through 93.19 may signal further growth. This scenario could push EUR/USD towards fresh new lows.

Surprisingly, USD has continued to increase even if the US Retail Sales and the Core Retail Sales have come in worse than expected. The greenback has received a helping hand from the US Industrial Production which has increased by 0.9% versus 0.5% estimate. In addition, the Capacity Utilization Rate which has jumped to 76.1%, exceeding the 75.7% forecast.

EUR/USD Amazing Sell-Off!

EUR/USD failed to stay above the 1.1769 level and beyond the weekly pivot point (1.1768). Now it's located at 1.1715 below the weekly S1 (1.1732). The aggressive sell-off was stopped by the 50% Fibonacci line which stands as a dynamic support.

A bullish pattern printed in this zone could help us to cat a new bullish momentum. Still, the pressure is high after dropped below the ascending pitchfork's lower median line (lml) and as long as it stays below the black downtrend line.

Forecast!

Making a new lower low, dropping, and closing below 1.1705 could signal a further drop towards 1.1650 or even lower towards 1.16 psychological level. Its failure to approach and reach the upper median line (UML) signaled strong selling pressure.