FX.co ★ EUR/USD extends its range

The EUR/USD pair rebounded as the Dollar Index plunged after reaching strong resistance levels. In the short term, the currency pair continues to move sideways, and only escaping from the current range could bring new trading opportunities.

Surprisingly or not, the EUR/USD pair bounced back despite the German Factory Orders dropped by 2.7% versus 0.4% growth expected, while the US Trade Balance came in better than expected at -87.1B versus -89.6B forecasts. Fundamentally, the ECB and the US inflation publication could really shake the markets at the end of the week.

EUR/USD rebound

Technically, the EUR/USD pair failed to reach 1.0641 key support and now it tries to come back higher. It is trapped between 1.0757 and 1.0641 levels. Personally, I'll wait for the rate to escape from this range before I'll take action.

After dropping below the uptrend line, the EUR/USD pair was somehow expected to develop a strong downside movement but unfortunately, the rate failed to make a new lower low.

EUR/USD forecast

The EUR/USD pair could activate a larger drop if it makes a new lower low. A valid breakdown below 1.0641 brings new selling opportunities.