The EUR/USD pair plunged term and now it was traded at 1.0282 far below 1.0364 yesterday’s high. The rate crashed as the Dollar Index has managed to rebound. Surprisingly or not, the rate dropped even if the US PPI and Core PPI disappointed yesterday. Fundamentally, the USD received a helping hand from the Prelim UoM Consumer Sentiment earlier, so it could remain strong in the short term.
Technically, the price found resistance at 1.0353 – 1.0348 again. It has registered only false breakout signaling exhausted buyers and a potential sell-off. Now, it challenged the 1.0269 static support and the R1 (1.0280).The price action developed a flag pattern. Still, only breaking above the downtrend line may signal a new bullish momentum. Taking out the 1.0269 support and the 150% Fibonacci line may signal more declines.
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