FX.co ★ EUR/USD sellers in control after US CB consumer confidence data

The EUR/USD pair extended its sideways movement. It was trading at 1.0597 at the time of writing. As you already know, price action signaled exhausted buyers and now it has turned to the downside. As you already know, the bias is still bullish, so we need to wait for strong confirmation before taking action.

Fundamentally, the German Gfk Consumer Climate came in at -37.8 points versus the -38.0 points expected. On the other hand, the USD received a helping hand from the US CB Consumer Confidence which came in at 108.3 versus the 101.0 expected, and from the Current Account, the economic indicator came in better than expected as well.

EUR/USD Challenges Critical Support!

Technically, the rate challenges the warning line (wl1) and the 1.0594 static support. 1.0582 stands as a downside obstacle as well.

As you already know, the rate failed to reach and retest the 1.0662 static resistance signaling exhausted buyers and downside pressure.

EUR/USD Outlook!

A valid breakdown below the warning line (wl1) and most important below 1.0582 activates more declines. This is seen as a short opportunity, as a selling setup.