FX.co ★ EUR/USD under massive pressure

EUR/USD was trading in the red at the time of writing as the Dollar Index has managed to jump higher in the last hours. In the short term, the pair is still trapped within an extended range pattern, so we'll have to wait for a fresh trading opportunity before taking action.

Fundamentally, the Eurozone and the US reported poor economic figures today. The Eurozone Consumer Confidence was reported at -8 points matching expectations, while the German Gfk Consumer Climate dropped by 6.8% compared to 2.6% expected and versus a 1.8% drop in the previous reporting period.

The US Current Account dropped unexpectedly lower from -198B to -215B below -206B expected. The US Final GDP, CB Consumer Confidence, and the Existing Home Sales scheduled for release tomorrow are expected to be positive and boost the US dollar.

EUR/USD downside signaled

The EUR/USD pair tested and retested the downtrend line confirming once again the bias remains bearish. As you already know from my analysis, EUR/USD could drop deeper as long as it stays under this upside obstacle.

Also, it has failed to stabilize above the weekly pivot point (1.1273). In the short term, it could retest the pivot point and the Ascending Pitchfork's lower median line (lml) before dropping deeper.

EUR/USD prediction

In the short term, the trend is still undecided. That's why we need strong confirmation that the price will move up or down. A valid breakdown below 1.1235 may signal more declines, while only a valid breakout above the 1.1374 could activate an upside reversal.