The EUR/USD pair rebounded in the short term, but the bearish pressure remains high. The bias is bearish in the short term, so more declines are still in the cards. It was trading at 1.0870 at the time of writing.
It has climbed as high as 1.0890 as the USD took a hit from the US Empire State Manufacturing Index which came in at -31.8 points versus -3.7 points forecasts. Tomorrow, the US Retail Sales is expected to report a 0.8% growth, while Core Retail Sales could register a 0.5% growth. On the other hand, the Eurozone ZEW Economic Sentiment and German ZEW Economic Sentiment could bring more action.
EUR/USD downside pressure
Technically, the EUR/USD pair increased a little, but it has registered only false breakouts through 1.0879. You knew from my previous analysis that breaking below the median line (ml) activates more declines.
As you can see on the H1 chart, the price action developed a flag pattern, which could announce a downside continuation.
EUR/USD prediction
A new lower low, a valid breakdown below 1.0855 may activate more declines. This is seen as a new selling opportunity.
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