FX.co ★ EUR/USD finds temporary support

The EUR/USD pair plunged in the short term after reaching the 1.1482 level. Now, it's traded at 1.1329 at the time of writing. In the short term, the price is fighting hard to rebound and recover. It has increased a little only because the DXY slipped lower after its amazing rally..

EUR/USD dropped as much as the 1.1314 level in yesterday's session. It has extended its sell-off, even if the Eurozone ZEW Economic Sentiment and the German ZEW Economic Sentiment came in better than expected.

Today, the German Final CPI is expected to report a 0.5% growth, while the Euro-zone Current Account could rise from 18.1B to 20.3B. Don't forget that the bias is bearish, so better than expected US data could push the rate down. The US Housing Starts and the Building Permits will be released later.

EUR/USD Upside Could Be Over!

EUR/USD failed to stabilize above the ascending pitchfork's median line (ML) signaling that the buyers are exhausted and that the rate could come back down. Now, it has found support on the ascending pitchfork's 150% Fibonacci line.

After its amazing sell-off, we cannot exclude a temporary rebound. It could come back to test and retest the 1.1374 level and the lower median line (LML). This scenario could take shape only if the Dollar Index drops.

EUR/USD Prediction!

After failing to stay above 1.1374, EUR/USD signaled that the sentiment changed again. A valid breakdown below the 150% Fibonacci line may announce more declines. Technically, a temporary rebound could help the sellers to catch a new leg down. In my opinion, a larger downside movement could be activated by a valid breakdown below 1.1273.