FX.co ★ EUR/USD downside stopped by 1.1273!

EUR/USD rebounded after registering strong downside movement. Still, the rebound could be only a temporary one. It's traded at 1.1296 level above 1.1263 today's low. In the short term, the price could come back to test and retest the immediate upside obstacles before resuming its downside movement.

Fundamentally, the German ifo Business Climate was reported at 95.7 points above 94.6 expected. On the other hand, the US CB Consumer Confidence dropped from 115.2 to 113.8, but it has failed to reach 111.4 expected. Tomorrow, the FOMC is seen as a high-impact event and could bring sharp movements in both directions.

EUR/USD Temporary Rebound, Bearish Bias!

EUR/USD extended its downside movement after ignoring the uptrend line. Now, the sell-off was stopped by 1.1273 static support. It approaches the broken downtrend line. It could test and retest it.

As long as it stays under the uptrend line and under the median line (ml), EUR/USD could extend its downside movement. Technically, a downside continuation will be confirmed by a valid breakdown below 1.1273.

EUR/USD Outlook!

The rebound could be only a temporary one. After its amazing drop, EUR/USD was somehow expected to come back to test and retest the broken downside obstacles. A valid breakdown below 1.1273, a new lower low, a bearish closure under 1.1263 could activate a deeper drop and could bring new selling opportunities.