- The bias remains bullish as long as it stays above the median line (ml).
- A new lower low activates more declines.
- The US economic data should have a big impact today.
The EUR/USD price is trading in the red at 1.0890 at the time of writing and is fighting hard to rebound. After the last bearish movement, you can expect an upside correction.
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The US dollar turned to the upside in the short term, weighing down today’s currency markets.
Yesterday, the greenback received a helping hand from the US economic data. The Retail Sales and Core Retail Sales reported an important growth in February after a significant drop in January. In addition, the PPI, Core PPI, and Unemployment Claims came in better than expected.
Today, the US economic figures should move the price. The Empire State Manufacturing Index is expected to be at -7.0 points.
Prelim UoM Consumer Sentiment could jump from 76.9 points to 77.1 points. Industrial Production may report a 0.0% after a 0.1% drop in the previous reporting period, while the Capacity Utilization Rate could remain at 78.5%.
Furthermore, the Prelim UoM Inflation Expectations and Import Prices data will also be released. Positive data helps the greenback resume its appreciation.
EUR/USD Price Technical Analysis: Correction
The currency pair turned to the downside after registering only a false breakout with great penetration through the warning line.
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Failing to stay above the upper median line (uml) could result in a larger correction in the short term. Now, the pair has found demand again, right below the median line (ml) and above the 1.0867 key downside obstacle.
The bias remains bullish despite the current drop as long as it stays above these downside obstacles. A new lower low activates more declines towards the lower median line (lml) and down to 1.0800 psychological level. On the other hand, stabilizing above the median line (ml) may announce a new rally.
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