EUR/USD Vulnerable To Resume Its Correction!
EUR/USD trades at 1.2031 lower compared to 1.2113 yesterday’s high. The rate drops after retesting broken dynamic support and now is expected to pressure strong and a critical support area.
The pair should drop deeper and extend its corrective phase if the US Dollar Index will continue to increase after the US data released till the end of the week. Definitely, the US NFP, Unemployment Rate, and the Average Hourly Earnings published tomorrow will be decisive.
Positive US data should boost the USDX, this scenario brings more sellers on EUR/USD which could register a sharp drop. EUR/USD could turn to the upside only if the United States figures will disappoint traders.
EUR/USD Loses Altitude!
EUR/USD plunged after testing the minor up channel’s downside line. The S1 (1.2007) and the descending pitchfork’s median line (ML) represent near-term support levels, obstacles. The 50% retracement level is seen as support as well, so only a breakdown below it signals a larger and continuous drop. Fundamentally, the US Factory Orders and the Unemployment Claims data could help the Dollar to resume its appreciation of the figures come in better than expected later today.
Yesterday I’ve told you that the bearish bias, selling pressure, remains intact as long as EUR/USD is traded below the upper median line (UML). Its failure to reach and retest the UML or the Pivot Point (1.2125) signals an important sell-off in the short term.
EUR/USD Forecast & Tips!
Selling here is risky as EUR/USD could turn to the upside if the US data will come in worse than expected today and tomorrow. Still, dropping and stabilizing below the 50% retracement and under the median line (ML), making a new lower low, could really bring a good selling opportunity.
Falling below the 50% retracement level signals a drop way below the 1,19 and under 61.8% retracement level.
The material has been provided by InstaForex Company – www.instaforex.com