- The bias remains bearish despite the current rebound.
- After such an impressive drop, a bounce back was natural.
- The US data could move the rate today.
The EUR/USD price marked fresh lows at 1.0525 yesterday. However, the pair has rebounded a little and is trading at 1.0554 at press time. The bias remains bearish, so the price could hit new lows despite a corrective upside.
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The US dollar dominated the currency market yesterday after the Consumer Price Index m/m reported a 0.4% growth versus only a 0.3% growth estimate. At the same time, CPI y/y remained at 3.7% even if the traders expected a potential drop to 3.6%.
Also, the Unemployment Claims came in better than expected, while Core CPI matched expectations. Earlier, the Euro received a helping hand from the Eurozone Industrial Production, which reported a 0.6% growth, beating the 0.1% growth forecasted versus the 1.3% drop in the previous reporting period. Furthermore, the ECB President Lagarde Speaks and the FOMC Member Harker Speaks could be significant.
Moreover, the US economic figures could again be decisive today. The Prelim UoM Consumer Sentiment is expected to drop from 68.1 to 67.2 points, which could be negative for the USD.
EUR/USD Price Technical Analysis: Bearish Bias
From the technical point of view, the EUR/USD pair bounced after registering false breakouts above the major downtrend line. It has taken out the ascending pitchfork’s lower median line (LML) and the weekly pivot point of 1.0540, signaling more declines. Still, the price rebounded after reaching the demand zone above 1.0519, the former low.
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It could try to reach and retest the broken lower median line (LML) before extending its sell-off. A downside continuation should be activated after making a new lower low.
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