- After registering a valid breakout, the EUR/USD pair could bring new trading opportunities.
- Staying near the downtrend line may announce an imminent breakout.
- Only a valid breakdown below the immediate obstacles may announce a new leg down.
The EUR/USD price is trading at 1.1041 at the time of writing. It endeavors to rebound as the Dollar Index has found temporary resistance.
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In the short term, the currency pair may move sideways before deciding direction. Personally, I’ll wait for a clear direction before taking action as the price seems undecided as long as the Dollar Index moves in a range.
Technically, the bias remains bearish despite temporary rebounds. Fundamentally, the USD was weighed by the US Existing Home Sales on Friday. The economic indicator came in at 6.02M below 6.10M expected.
On the contrary, the Eurozone Trade Balance was reported at -7.7B above -9.1B. Today, the German PPI rose by 1.4% less compared to the 1.8% growth expected. Later, the Fed Chair Powell Speaks could bring volatility and sharp movements.
Tomorrow, the Eurozone Current Account is expected to grow from 22.6B to 24.3B, which could be good for the Euro. Furthermore, ECB President Lagarde Speaks and the FOMC Member Williams Speaks could also bring an action on the EUR/USD pair.
EUR/USD price technical analysis: Sideways price behavior
As you can see on the 4-hour chart, the EUR/USD pair is trapped between the uptrend and the downtrend lines. Only a valid breakout could bring us a clear direction. In the short term, it could resume its sideways movement. The price is expected to challenge the immediate obstacles soon, but don’t forget that we may also have false breakouts.
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As you can see on the 4-hour chart, the price dropped to retest the 1.0990 -1.1019 support zone after registering only a false breakout through the downtrend line. As long as it stays near the downtrend line, we cannot exclude a potential breakout and upside continuation.
On the other hand, staying below the downtrend line and making a valid breakdown below the uptrend line and below the 1.0990 – 1.1019 zone may announce a new leg down and bring new short opportunities.
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