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  • The EUR/USD pair developed a bearish pattern in the short term.
  • The US data could be decisive later today.
  • It could test and retest the near-term resistance levels before dropping again. 

The EUR/USD price rebounded in the short term trying to erase the latest losses. After its strong drop registered on Tuesday, the price was expected to come back higher as the Dollar Index remains in a corrective phase. 

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The index is still under strong downside pressure. Yesterday, the Eurozone and US data came in mixed. The currency pair changed little after the FOMC Meeting Minutes. The Federal Reserve is expected to deliver furrher hikes in the upcoming monetary policy meetings. 

The US JOLTS Job Openings came in better than expected, while ISM Manufacturing PMI, ISM Manufacturing Prices, and Wards Total Vehicle Sales came in worse than expected. Earlier today, the German Trade Balance came in at 10.8B versus 7.5B expected, the Eurozone PPI will be released later. 

Still, the ADP Non-Farm Employment Change indicator is seen as the most important event of the day.  The economic indicator is expected at 152K versus the 127K in the previous reporting period. 

In addition, the Unemployment Claims could jump from 225K to 230K in the last week, Trade Balance could increase from -78.2B to -64.2B, while Final Services PMI could remain steady at 44.4 points. Tomorrow, the US NFP, Unemployment Rate, Average Hourly Earnings, and the ISM Services PMI could really shake the markets. 

EUR/USD price technical analysis: Exhaustion signs

Eur/usd price

Technically, the currency pair rebounded within an up channel pattern and now it has found resistance at the weekly S1 (1.0620). The false breakouts signaled exhausted buyers. 

Still, a new downside movement could be announced only by a valid breakdown below the uptrend line, through the channel’s downside line. The flag pattern is seen as a bearish formation and it could announce a new leg down. 

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Still, the descending pitchfork’s median line (ml) represents the first downside target and obstacle. After its massive drop, the rebound was natural. The EUR/USD pair could test and retest the near-term resistance levels before going down. 

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