- The EUR/USD pair drops like a rock as the DXY rallies.
- Confirming its breakdown below the lower median line (LML) could activate more declines.
- Only a major bullish pattern could invalidate a larger downside movement.
The EUR/USD forecast sees the pair plunge to reach a new low of 1.1243 earlier today. Now, it’s traded at 1.1246 level and is strongly bearish as the Dollar Index seems unstoppable.
As you already know from my analyses, the DXY is bullish, further growth should force the pair to drop deeper. The price dropped even if the German PPI and the Euro-zone Current Account came in better than expected on Friday.
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Today, the Euro-zone Consumer Confidence could bring life to the EUR/USD pair. The economic indicator is expected to remain in the negative territory at -5 points. On the other hand, the US Existing Home Sales could drop from 6.29M to 6.20M.
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DXY Price Technical Analysis: Key Level
The Dollar Index rallied in the last minutes invalidating a potential retreat. It has climbed as much as 96.33 jumping far above 96.24 static resistance. Confirming its breakout above the former high and above the upper median line (uml) coulda activate an upside continuation.
Only a false breakout through the upside obstacles could signal that the DXY could develop a short-term correction.
EUR/USD Forecast: Price Technical Analysis – Dynamic Support
The EUR/USD pair is trading in the red and it could finally close below the descending pitchfork’s lower median line (LML). Its failure to reach and retest the down channel’s downside line or to stabilize above the 1.13 psychological level signalled strong selling pressure.
Tomorrow, the US and the Euro-zone manufacturing and services data could really shake all markets. These are seen as high impact events, so you should be careful.
From the technical point of view, the EUR/USD pair could extend its sell-off if it stabilizes below the pitchfork’s lower median line (LML). 1.1239 stands as a static support. Taking out this downside obstacle may activate more declines. Only a major bullish pattern here around this static support could signal that the downside movement could be over.
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