The EUR/USD pair is trading in the red at 1.0904 at the time of writing and it seems determined to come back down. After its amazing rally, the price could register a new sell-off in the short term.
Fundamentally, the Euro took a hit from the Eurozone Retail Sales indicator which reported a 0.8% drop. On the other hand, the USD received a helping hand from the NFIB Small Business Index. The indicator came in better than expected.
Tomorrow, the fundamentals should move the instrument. The US CPI and Core CPI should bring aggressive movements.
EUR/USD Upside Seems Over!
Technically, the EUR/USD pair climbed higher within an up-channel pattern. Now, it has registered only a false breakout through the 1.0926 former high and it has dropped below the uptrend line.
Now, it is almost to hit the 1.0902 former low which represents static support. A valid breakdown from the flag pattern may announce a new leg down.
EUR/USD Forecast!
A valid breakdown below 1.0902 activates a downside continuation and represents a selling signal. The median line (ml) of the descending pitchfork is seen as a downside target.
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