The EUR/USD pair crashed in the short term as the Dollar Index registered a strong rally. Now, it’s trading at 1.0602 at the time of writing. It has dropped by 1.03% from yesterday’s high of 1.0691 to 1.0581 today’s low.
Fundamentally, the pair dropped even if the US ISM Manufacturing PMI came in at 47.7 points below 47.9 points expected but better compared to 47.4 in the previous reporting period. Today, the Eurozone CPI rose by 8.5% versus 8.3% expected, Core CPI Flash Estimate surged by 5.6% beating the 5.3% growth expected, while Unemployment Rate increased unexpectedly from 6.6% to 6.7%.
On the other hand, Revised Unit Labor Costs, Revised Nonfarm productivity, and Unemployment Claims came in better than expected but the EUR/USD signaled exhausted sellers. It seems that the positive data was priced in.
EUR/USD Massive Drop!
Technically, the EUR/USD price found resistance below the 1.07 psychological level. Now, it has dropped below the 1.06 psychological level but it has failed to stay below it signaling an oversold situation.
It has failed to reach and retest the 1.0577 – 1.0565 support zone. As long as it stays above this area, the EUR/USD pair could develop a new bullish momentum. Only a valid breakdown below it activates more declines and invalidates the upside scenario.
EUR/USD Forecast!
Stochastic signals an oversold situation, so testing and retesting the weekly pivot point of 1.0600 and 1.0577 – 1.0565, registering false breakdowns should announce a new swing higher. A bullish closure above the immediate high of 1.0614 is seen as a buying opportunity.
The material has been provided by InstaForex Company – www.instaforex.com
The EUR/USD pair crashed in the short term as the Dollar Index registered a strong rally. Now, it’s trading at 1.0602 at the time of writing. It has dropped by 1.03% from yesterday’s high of 1.0691 to 1.0581 today’s low.
Fundamentally, the pair dropped even if the US ISM Manufacturing PMI came in at 47.7 points below 47.9 points expected but better compared to 47.4 in the previous reporting period. Today, the Eurozone CPI rose by 8.5% versus 8.3% expected, Core CPI Flash Estimate surged by 5.6% beating the 5.3% growth expected, while Unemployment Rate increased unexpectedly from 6.6% to 6.7%.
On the other hand, Revised Unit Labor Costs, Revised Nonfarm productivity, and Unemployment Claims came in better than expected but the EUR/USD signaled exhausted sellers. It seems that the positive data was priced in.
EUR/USD Massive Drop!
Technically, the EUR/USD price found resistance below the 1.07 psychological level. Now, it has dropped below the 1.06 psychological level but it has failed to stay below it signaling an oversold situation.
It has failed to reach and retest the 1.0577 – 1.0565 support zone. As long as it stays above this area, the EUR/USD pair could develop a new bullish momentum. Only a valid breakdown below it activates more declines and invalidates the upside scenario.
EUR/USD Forecast!
Stochastic signals an oversold situation, so testing and retesting the weekly pivot point of 1.0600 and 1.0577 – 1.0565, registering false breakdowns should announce a new swing higher. A bullish closure above the immediate high of 1.0614 is seen as a buying opportunity.
The material has been provided by InstaForex Company – www.instaforex.com