EUR/USD Price Accelerated Sell-Off, Pitchfork’s LML as Next Target

EUR/USD Price Accelerated Sell-Off, Pitchfork’s LML as Next Target

  • The EUR/USD pair is strongly bearish as the DXY edged higher!
  • The lower median line (LML) could attract the price.
  • A temporary rebound could help us to catch a new sell-off.

The EUR/USD price plunged today as the Dollar Index managed to jump towards new highs. You knew from my previous analyses that the DXY maintains a bullish bias despite temporary retreats. Also, I’ve told you that the currency pair could extend its sell-off anytime.

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It has dropped by 1.61% from today’s high of 1.0448 to 1.0280 daily low. Technically, it has taken out strong downside obstacles, so the further drop is natural. Still, we cannot exclude a temporary rebound after its massive drop. The price could test the immediate resistance levels before dropping deeper.

Fundamentally, the Euro received a hit from the Eurozone data. The PPI registered only a 0.7% growth versus 1.0% expected, Spanish Unemployment Change came in at -42.4K versus -41.3k expected, Sentix Investor Confidence dropped to -26.4 points below -20.0 points estimated, while the German Trade Balance was reported at -1.0B below 4.2B forecasts.

Today, the Eurozone Final Services PMI jumped from 52.8 to 53.0 points, while the German Final Services PMI came in at 52.4 points, matching expectations. Later today, the US Factory Orders are expected to report a 0.5% growth.

EUR/USD price technical analysis: New lows in sight

EUR/USD price

The EUR/USD pair accelerated its drop after retesting the descending pitchfork’s upper median line (UML). It was trading at 1.0294 at the time of writing. You knew from my previous analysis that the bias is bearish as long as it stays within the descending pitchfork’s body.

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The pair ignored the 1.0358 lower low and the median line (ml), representing downside obstacles. The rate retested the weekly S1 (1.0320), signaling strong sellers and more declines. I would like to see the median line (ml) retest before extending its sell-off towards the lower median line (LML).

A minor rebound could bring us new selling opportunities. As long as it stays under the median line (ml), the EUR/USD could approach and reach fresh new lows. The lower median line (LML) could act as a magnet.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.