EUR/USD bounced back from 1.2 psychological level and now is almost to reach 1.21 due to USDX’s drop. Still, the rebound could be only a temporary one if the US Dollar Index increases again.
The US is due to release high-impact data till the end of the week. The economic figures could be decisive for EUR/USD. Positive data could help the greenback to resume its short-term appreciation versus the other major currencies.
Today, the ADP Non-Farm Employment Change is expected around 203K jobs higher compared to 174K in January. Moreover, the ISM Services PMI could remain steady at 58.7 points, while the Final Services PMI is expected at 58.9.
EUR/USD Temporary Rebound?
EUR/USD registered an aggressive rebound after reaching the S1 (1.2006) and 1.2 levels. The median line (ML) represents important dynamic support as well, so the short-term bounce-back could be natural after the most recent sell-off.
Technically, EUR/USD has dropped from a minor up channel. The aggressive breakdown signaled that the price could still come back to retest the channel’s support before resuming its downside movement.
EUR/USD failed to stabilize above 23.6% retracement level, R1 (1.2188), and beyond the descending pitchfork’s upper median line (UML) confirming high selling pressure. Personally, I believe that the pair could drop deeper as long as it stays under the Pivot Point (1.2125) and under the UML.
Forecast & Tips!
EUR/USD could drop after testing the minor uptrend line, channel’s support, or after registering only false breakouts above the Pivot Point (1.2125) and through the upper median line (UML).
The pair will definitely drop if the US Dollar Index (USDX) increases again after the current decline. We’ll have a good selling opportunity if EUR/USD drops and closes below the S1 (1.2006) again.
1.19 and the S3 (1.1825) could be used as downside targets if EUR/USD drops after this bounce back.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.