FX.co ★ EUR/USD: down channel pattern

The EUR/USD pair is trading in the green at 1.0517 at the time of writing. It has rallied today as the Dollar Index turned to the downside again. As you already know from my analyses, when the DXY drops, the EUR/USD pair rallies.

Fundamentally, the Euro received a helping hand from German Industrial Production which reported a 0.1% drop versus the 0.6% drop expected, from the Eurozone GDP, the indicator registered a 0.3% growth beating the 0.2% growth estimates, and from the Final Employment Change.

On the other hand, the US Revised Unit Labor Costs came in better than expected while Revised Nonfarm Productivity reported worse than expected data.

EUR/USD Lost Altitude!

Technically, the price action developed a potential channel. The downtrend line and 1.0532 represent upside obstacles (resistance levels). 1.0496 and 1.0481 represent immediate support levels.

In the short term, the instrument could move sideways before developing a strong move in one direction. The bias remains bullish in the short term after failing to stabilize below the weekly pivot point of 1.0460.

EUR/USD Outlook!

Jumping, closing, and stabilizing above 1.0532 and most important above the downtrend line will validate further growth and will bring new buying opportunities. As long as the price stays above the weekly pivot point of 1.0460, EUR/USD could resume its growth.