- The EUR/USD pair reached a dynamic resistance and has now turned to the downside.
- The US data could bring sharp movements today.
- After its strong rally, a retreat is natural.
The EUR/USD price climbed as high as 1.0973 yesterday, forming a fresh higher high. Fundamentally, the price rallied as the US reported poor data during the week.
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Today, the fundamentals should move the price. The pair is trading at 1.0952 at the time of writing, and it seems overbought. A corrective downside is probable after a strong rally.
The USD took a hit from the US JOLTS JOB Openings and Factory Orders in the last trading session. The economic indicators came in worse than expected.
Today, the Eurozone data came in mixed. That’s why the Euro started to lose ground versus the Greenback. The Eurozone Final Services PMI came in at 55.0 points versus 55.6 points expected, signaling a slowdown in expansion, while German Final Services PMI dropped to 53.7 points from 53.9 points.
The EUR/USD pair tried to resume its growth after the German Factory Orders reported a 4.8% growth versus the 0.2% growth expected.
Later today, the US economic figures should shake the markets. The ADP Non-Farm Employment Change is expected at 208K in March versus 242K in February, while ISM Services PMI could drop from 55.1 points to 54.3 points. These are seen as high-impact events and could change the sentiment. Positive US data should boost the US dollar. This scenario could bring us new USD longs.
EUR/USD Price Technical Analysis: Resistance in play
Technically, the EUR/USD pair rallied after retesting the lower median line (LML). It has passed above the median line (ML) again but failed to stay there, signaling exhausted buyers. As you can see on the hourly chart, the price retested the median line, which has turned to the downside. I’ve drawn a descending pitchfork, hoping to catch a new sell-off.
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The price registered only false breakouts above the upper median line (UML), signaling downside pressure. This stands as dynamic resistance, so the median line (ml) could attract the rate as long as it stays below it.
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