The EUR/USD pair extended its sell-off and now is trading at 1.1120 at the time of writing. As you already know from my analyses, the bias is bearish in the short term, so further drop is natural. The Dollar Index is bullish and it seems determined to approach and reach new highs.
Fundamentally, the Euro lost significant ground versus its rivals even if the Eurozone Consumer Confidence, Current Account, and German PPI came in better than expected. On the other hand, the US reported mixed data in the last trading session.
Earlier today, the Canadian Retail Sales and Core Retail Sales data came in worse than expected.
EUR/USD Massive Drop!
As you can see on the H1 chart, the rate dropped below the median line (ml) and under the weekly pivot point of 1.1140, signaling more declines.
It has retested the broken median line (ml) confirming its breakout. Still, after its massive drop, we cannot exclude a potential rebound.
EUR/USD Outlook!
A new lower low, a bearish closure below 1.1107 activates more declines and is seen as a selling signal.
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