FX.co ★ EUR/USD: upside invalidated, US data in spotlight

The EUR/USD pair dropped in the short term as the Dollar Index managed to rebound. Now, it's trading at 1.0838 at the time of writing. The price action signaled that the upwards movement ended and that we may have a new sell-off.

Today, the fundamentals should move the instrument. The most important event is represented by the US CB Consumer Confidence, the indicator could climb from 108.3 to 109.1 points. Chicago PMI and HPI will be released as well.

On the other hand, the Eurozone Prelim Flash GDP, German Unemployment Change, and German Retail Sales could have an impact as well.

EUR/USD Range Breakout!

EUR/USD was trapped between 1.0845 and 1.0926 levels. It has failed to reach and retest the range's resistance and now it has dropped and closed below the pattern's support signaling strong downside pressure.

As you can see on the H1, the rate escaped from an up-channel pattern. Breaking below the uptrend line also announced that the leg higher ended.

EUR/USD Forecast!

As long as it stays below 1.0867 and under the broken downtrend line, EUR/USD should drop deeper. Testing and retesting the broken levels could bring new short signals. Actually, the current breakdown below 1.0845 was seen as a selling opportunity. The 1.0780 - 1.0766 area represents downside targets.