FX.co ★ EUR/USD challenging downtrend line

The EUR/USD pair changed little in the short term, that's why we have to wait for fresh trading opportunities. It's located at 1.0807 and it seems undecided. The Dollar Index maintains a bullish bias despite temporary retreats, that's why the pair could drop deeper anytime.

Fundamentally, the Eurozone M3 Money Supply and Private Loans came in worse than expected. Tomorrow, the Eurozone is to release the German Gfk Consumer Climate and the EU Economic Forecasts. Still, only the US data could really shake the price.

The US CB Consumer Confidence, JOLTS Job Openings, and S&P/CS Composite-20 HPI represent high-impact events. Positive data boosts the greenback.

EUR/USD Temporary Rebound?

Technically, the currency pair challenges the downtrend line, which represents a dynamic resistance. As long as it stays below it, the rate could drop again. It has registered false breakouts, so a sell-off is imminent.

It's trapped between the 1.0817 and 1.0788 levels. Escaping from this range should bring us new signals.

EUR/USD Outlook!

A new higher high, a bullish closure above 1.0822 is seen as a buying opportunity.

False breakouts through the downtrend line should announce a sell-off at least until 1.0788. Dropping and closing below this static support and below the lower median line of the ascending pitchfork is seen as a selling opportunity.