- The EUR/USD pair signaled exhausted buyers.
- A new lower low activates more declines.
- The US data could bring sharp movements later today.
The EUR/USD price changed little in the short-term horizon. The pair is trading at 1.0370 at the time of writing. The pair is ranging as the traders await the key US data.
The US is to release high-impact economic figures these days. Today, the ADP Non-Farm Employment Change is expected at 196K versus 239K in the previous reporting period. Prelim GDP may report a 2.8% growth in Q3 versus 2.6% in Q2, while the JOLTS Job Openings indicator could drop from 10.72M to 10.24 M.
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In addition, Pending Home Sales could report a 5.8% drop, Chicago PMI is expected at 47.0 points, Prelim Wholesale Inventories may register a 0.5% growth, while Goods Trade Balance could increase from -92.2B to -90.7B. The Fed Chair Powell may have a significant impact as well.
On the other hand, the Eurozone CPI Flash Estimate is expected to report a 10.4% growth, while Core CPI Flash Estimate could report a 5.0% growth. Better than expected, US data should lift the greenback, while poor data could push the EUR/USD pair higher.
EUR/USD price technical analysis: Bulls struggling
As you can see on the hourly chart, the price failed to close above the 1.0481 higher high, and now it has turned to the downside. After dropping below the ascending trendline, the price action signaled exhausted buyers and a potential sell-off. The price tried to retest the broken line before dropping deeper.
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It is below the weekly pivot point of 1.0350, representing a static resistance. Staying below it and making a new lower low activates more declines. Technically, the price action developed a potential Double Top pattern.
Still, the formation could be activated only after dropping and closing below the 1.0222 low. The 1.0438 and 1.0481 represent strong upside obstacles. Only taking out these levels could result in an upside continuation.
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