FX.co ★ EUR/USD: up channel as bearish pattern

The EUR/USD pair was trading in the red at 1.0501 on the H4 chart at the time of writing. As you already know, the currency pair rebounded as the Dollar Index is in a corrective phase after its swing higher. Technically, the price action developed an up-channel pattern which could represent a downside continuation pattern. The bias remains bearish, so the current bounce back could help the sellers to catch a new sell-off.

Today, the German PPI rose by 1.6% exceeding the 1.5% growth expected. Tomorrow, the Eurozone Current Account is expected at -3.2B below -1.6B in the previous reporting period. On the other hand, the US Existing Home Sales could drop from 5.61M to 5.40M.

EUR/USD Below Major Resistance!

The EUR/USD pair rebounded but the bias remains bearish. It could register a larger rebound if it makes a valid breakout above the inside sliding line (sl) and above the 1.0545 immediate high.

As you can see on the H1 chart, the price is trapped within an up channel. This formation could bring a downside continuation. Still, a further drop is far from being confirmed.

EUR/USD Outlook!

Jumping, closing, and stabilizing above 1.0545 could activate further growth towards 1.0641.

A new lower low, dropping and closing below 1.0444 and below the median line (ml) could activate a larger drop.