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01.07.202119:40 Forex Analysis & Reviews: EUR/USD Attention At Support Breakout!

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EUR/USD dropped and now is located at 1.1853, right above 1.1847 static support. DXY's rally forced the pair to come back down and invalidate a potential rebound. The US Unemployment Claims have come in better than expected.

The economic indicator was reported at 364K below 388K forecast in the previous week which is good for the USD. The ISM Manufacturing PMI, Final Manufacturing PMI, and Construction Spending have disappointed, but the greenback remains strong ahead of the US NFP, Average Hourly Earnings, and Unemployment Rate data.

EUR/USD Reversal Pattern?

EUR/USD failed to stabilize above the S1 (1.1863) level and now is pressuring the 1.1847 static support. Dropping and stabilizing under this level could really signal a deeper drop. This scenario could take shape if the DXY resumes its growth.

Potential growth could be signaled by a bullish fly above 1.1884 today's high. EUR/USD could develop a Double Bottom pattern if it stays above 1.1847 static support.

Outlook!

EUR/USD could extend its sell-off if it drops and stabilizes under 1.1837 today's low. The next downside target could be at the 1.1800 level.

Buying could be activated by a new higher high, if the pair jumps above 1.1884 today's high.

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