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  • The bias remains bearish despite temporary rebounds.
  • Testing the downtrend line could bring new short opportunities.
  • Only a major bullish reversal pattern could announce larger growth.

The EUR/USD price dropped as low as 1.0471 today, posting fresh 5-year lows. Now, the pair is trading at 1.0513 at the time of writing, and it seems a little oversold.

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Technically, the price reached dynamic support, and now it is trying to rebound. Unfortunately, the USD took a hit from the US data earlier. That’s why the pair could recover after its massive sell-off.

Also, the Dollar Index seems overbought, but it’s premature to talk about a corrective phase. Despite poor US economic data in the last few days, the greenback resumed its appreciation.

Earlier, the US Advance GDP reported a 1.4% drop in Q1 even if the specialists expected a 1.1% growth after a 6.9% growth in the previous reporting period.

In addition, the Advance GDP Price Index rose by 8.0%, beating the 7.2% estimates and the 7.1% growth in Q4, while the Unemployment Claims dropped from 185K to 180K in the last week, failing to reach 178K estimates.

On the other hand, the German Prelim CPI rose by 0.8% exceeding the 0.5% estimates. Moreover, Spanish Unemployment Rate increased unexpectedly from 13.3% to 13.6%, even if the specialists expected a potential drop to 13.0%. Spanish Flash CPI reported an 8.4% growth versus 9.1% forecasts.

EUR/USD price technical analysis: Bearish bias

eur/usd price

The EUR/USD pair extended its sell-off after making a valid breakdown below the median line (ML) and failing to reach and retest the downtrend line. Instead, the pair has reached the descending pitchfork’s lower median line (LML), which is dynamic support.

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This line represents a downside target. Still, the bias remains bearish as long as it stays under the downtrend line. So, it could try to come back to test and retest it before dropping deeper in the short term.

This scenario could take shape if the Dollar Index drops a little. We cannot talk about a larger growth as long as we don’t have a strong bullish reversal pattern. On the other hand, a temporary rebound could bring new selling opportunities.

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