The EUR/USD pair rebounded in the short term but the downside pressure remains high, so the price could resume its drop. It was trading at 1.0842 at the time of writing far above today's low of 1.0810.
Fundamentally, the Eurozone Final CPI and Final Core CPI came in line with expectations. On the other hand, Housing Starts came in line with expectations, while Building Permits turned out to be worse than expected. Tomorrow, the US is to release the Unemployment Claims, CB Leading Index, Existing Home Sales, and Philly Fed Manufacturing Index.
EUR/USD Bearish Bias!
As you can see on the H1 chart, the rate found strong demand above the 1.0800 psychological level and it jumped above the median line (ml) of the descending pitchfork.
The 1.0855 level represents a static resistance. Furthermore, the former high of 1.0873 represents an upside obstacle as well.
EUR/USD Forecast!
The rebound could bring new selling opportunities. False breakouts above 1.0855 or through 1.0873 should announce a new sell-off, this scenario brings new selling signals. Also, invalidating its breakout above the median line (ml) announces a downside continuation.
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