FX.co ★ EUR/USD: more declines in cards

The EUR/USD pair extended its downside movement as the Dollar Index resumed its growth. It's trading at 1.1062 at the time of writing above 1.1033 today's low. Technically, the price is strongly bearish, so a further drop is favored.

Today, the US and the Euro zone economic data came in mixed today. The Euro zone Unemployment Rate was reported at 6.8% below 6.9% expected, while the PPI rose by 5.2% beating the 2.5% estimates. In addition, the German Final Services PMI dropped unexpectedly from 56.6 to 55.8 points, while the Euro zone Final Services PMI came in at 55.5 below 55.8 forecasts.

On the other hand, the US Unemployment Claims dropped to 215K from 233K in the last week but the ISM Services PMI fell from 59.9 to 56.5 points even if the specialists have expected a potential growth to 61.2.

EUR/USD Down Channel Breakdown!

EUR/USD resumed its sell-off after failing to close the gap down. Staying above the channel's downside line signaled an imminent breakdown through this dynamic support. As you can see, the rate escaped from the pattern's body signaling a potential deeper drop.

The pair has found temporary support right above 150% Fibonacci line of the sideways pitchfork. The bias remains bearish as long as it stays under the channel's downside line.

EUR/USD Prediction!

Its valid breakdown below 1.1100 psychological level signaled more declines. A new lower low, bearish closure below 1.1033 today's low, and a valid breakdown below 150% line may activate a potential drop at least towards the 1.1 psychological level.