FX.co ★ EUR/USD: deeper drop activated as expected

The EUR/USD pair plunged in the last hours and now is trading at 1.0713 at the time of writing. It's located far below 1.0758 today's high. You knew from my analyses, that the bias remains bearish despite temporary rebounds.

The currency pair turned to the downside after the US economic data. Core PCE Price Index rose by 0.4% beating the 0.3% growth estimated, Durable Goods Orders reported a 1.1% growth versus the 1.0% drop expected, while Revised UoM Consumer Sentiment jumped from 57.7 points to 59.2 points, above 58.2 forecasts. In addition, Prelim Wholesale Inventories and Personal Spending reported better than expected data as well.

EUR/USD Upside Invalidated Again!

Technically, EUR/USD retested the 1.0748 - 1.0762 resistance zone and now it has dropped below 1.0713 support and under the median line (ml). I told you yesterday that the bias remains bearish despite temporary rebounds.

Stabilizing below the median line (ml) may announce more declines. Failing to stay above the median line (ml) shows strong selling pressure.

EUR/USD Outlook!

The EUR/USD pair tries to test and retest the median line (ml) and the 1.0713 broken support levels. Staying below these levels and making a bearish closure below 1.0701 today's low validates a bearish continuation. This represents a selling opportunity.