The EUR/USD pair crashed in the short term as the Dollar Index rallied. Fundamentally, the USD was somehow expected to take the lead after the US retail sales figures, Industrial Production, and Capacity Utilization Rate came in better than expected yesterday.
Today, the Eurozone Final Core CPI and Final CPI matched expectations. On the other hand, the greenback rallied even if the US reported mixed data. Housing Starts came in at 1.36M below 1.39M but above 1.27M in the previous reporting period, while Building Permits indicator was reported at 1.47M above 1.45M expected.
EUR/USD Flag Pattern!
As you can see on the H1 chart, the price tested and retested the major downtrend line again, registering only a false breakdown. This situation announced exhausted buyers and strong downside pressure.
In the short term, the rate developed a minor flag pattern which indicates a downside continuation.
EUR/USD Outlook!
The 1.0532 former low stands as a key support. Dropping and closing below it activates more declines and is seen as a selling signal. The S1 (1.0450) stands as a potential target.
The material has been provided by InstaForex Company – www.instaforex.com
The EUR/USD pair crashed in the short term as the Dollar Index rallied. Fundamentally, the USD was somehow expected to take the lead after the US retail sales figures, Industrial Production, and Capacity Utilization Rate came in better than expected yesterday.
Today, the Eurozone Final Core CPI and Final CPI matched expectations. On the other hand, the greenback rallied even if the US reported mixed data. Housing Starts came in at 1.36M below 1.39M but above 1.27M in the previous reporting period, while Building Permits indicator was reported at 1.47M above 1.45M expected.
EUR/USD Flag Pattern!
As you can see on the H1 chart, the price tested and retested the major downtrend line again, registering only a false breakdown. This situation announced exhausted buyers and strong downside pressure.
In the short term, the rate developed a minor flag pattern which indicates a downside continuation.
EUR/USD Outlook!
The 1.0532 former low stands as a key support. Dropping and closing below it activates more declines and is seen as a selling signal. The S1 (1.0450) stands as a potential target.
The material has been provided by InstaForex Company – www.instaforex.com
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