- The downside pressure remains high as the DXY is bullish.
- The lower median line stands as a dynamic support.
- New false breakdowns may announce an oversold.
The EUR/USD price dropped to 1.0622 on Friday, registering a fresh multi-week low. After such a plummet, the buyers took the lead and corrected higher. The pair is located at 1.0639 at the time of writing and is struggling to recover.
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Despite minor retreats, the downside pressure remains high as the US dollar is still bullish. Fundamentally, the greenback took a hit from the US Prelim UoM Consumer Sentiment, which came in at 77.9 points below 79.0 points expected and compared to 79.4 in the previous reporting period.
Now, the EUR/USD has dropped again as the US retail sales reported a 0.7% growth, beating the estimated 0.4% growth, while core retail sales registered a 1.1% growth, beating the 0.5% growth forecasted.
The greenback is strongly bullish even though the US Empire State Manufacturing Index came in worse than expected, at -14.3 points, versus -5.2 points expected.
Later, the US is to release the Business Inventories and NAHB Housing Market Index data. On the other hand, the Eurozone Industrial Production rose by 0.8%, matching expectations.
Tomorrow, the ZEW Economic Sentiment and the Canadian inflation figures could have a big impact.
EUR/USD Price Technical Analysis: Strong Bearish Pressure
Technically, the EUR/USD pair found support right on the descending pitchfork’s lower median line (lml) and tried to rebound. This is dynamic support, and the price could be returned to rechallenge it.
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Only a new lower low, dropping and closing below 1.0622, activates more declines, a deeper drop.
On the contrary, new false breakdowns below the lower median line could announce an oversold situation. Still, a potential reversal is far from being confirmed.
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