The EUR/USD pair dropped as much as 1.0713 today, registering a new lower low. The bias is bearish, so a downside continuation is natural. DXY's further growth boosted the greenback. The USD dominates the currency pair also because the US data came in better than expected earlier today.
Fundamentally, the US Prelim GDP reported a 1.3% growth versus the 1.1% growth expected, Unemployment Claims came in at 229K versus 249K estimated, while Prelim GDP Price Index surged by 4.2% compared to the 4.0% growth estimated.
You knew from my previous analysis that the bias remains bearish if the rate stabilizes below the median line (ml). Dropping and closing below 1.0748 and under the weekly S1 (1.0740) confirmed more declines.
Technically, today's low of 1.0713 represents a static downside obstacle. The rate tested and retested the median line (ml), the false breakouts confirmed strong downside pressure.
A bearish closure below 1.0713 activates more declines. This is seen as a new selling opportunity.
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