The EUR/USD pair dropped to as much as 1.1632 while the DXY rallied. 1.1612 is seen as a critical support level – a valid breakdown here would indicate larger drop ahead. In the short term, the EUR/USD could rebound. A temporary bounce back could help sellers to go short. EUR/USD forecast sees the pair plunged, with the Dollar Index has managed to reach fresh new highs. DXY has climbed as much as 94.04 level boosting the greenback. As you already know from my analyses, the EUR/USD pair could extend its downside movement if the Dollar Index approaches and reaches new highs. The pair has ignored strong and critical support levels announcing strong sellers and a downside continuation. Still, after this amazing sell-off, the price could try to rebound. Temporary rebounds could help the sellers to go short again. Get FREE Forex Signals Now! 3 Free Forex Every Week – Full Technical Analysis The USD resumed its growth even if the US CB Consumer Confidence has come in worse than expected. Today, the German Import Prices and the Spanish Flash CPI have beaten expectations, but the EUR/USD pair has resumed its drop. ECB President Lagarde and Fed Chair Powell speeches in a virtual panel discussions at the ECB Forum have an impact on the EUR/USD forecast. If want to try out automated forex trading, read our guide for how to get started. Dollar Index Price Technical Analysis: Dynamic Resistance Breakout The Dollar Index has managed to jump above the fourth warning line (wl4) as well which represented a dynamic resistance. Validating its breakout may signal an upside continuation. Further growth could push the USD higher versus its rivals. Technically, its breakout above the 93.43 and through 93.72 announced that the Dollar Index could resume its upside journey. If you are on the look out for a good MT5 broker, then read our comprehensive guide. EUR/USD Forecast: Price Technical Analysis The EUR/USD pair plunged and now it has reached the descending pitchfork’s median line (ML), representing a dynamic support. It has ignored the 1.1663 and the weekly S2 (1.1647). It remains to see how it will react here at the median line (ML) which stands as a potential dynamic support. As you can see on the H4 chart, the EUR/USD escaped from the rate pattern between 1.1663 and 1.1907 levels. Getting out of this pattern may signal a deeper drop. Technically, the 1.1612 static support, historical level, is seen as a critical obstacle. Dropping and closing below it, registering a valid breakdown may activate a larger corrective phase. In the short term, it could develop a temporary rebound if the Dollar Index slips lower after its amazing rally. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. EUR/USD Daily share Read Next EUR/USD Price Tumbles Below 1.16 as USD Gains, Eying at US GDP Saqib Iqbal 3 weeks The EUR/USD pair dropped to as much as 1.1632 while the DXY rallied. 1.1612 is seen as a critical support level – a valid breakdown here would indicate larger drop ahead. In the short term, the EUR/USD could rebound. A temporary bounce back could help sellers to go short. EUR/USD forecast sees the pair plunged, with the Dollar Index has managed to reach fresh new highs. DXY has climbed as much as 94.04 level boosting the greenback. 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