- EUR/USD maintains a bearish bias if it remains below the downtrend line.
- A new lower low triggers more dips.
- US economic numbers should trigger more action today.
The EUR/USD price has moved back within the broad bearish trend. A small correction of the US dollar weakened the dollar in the short term.
The pair is trading at 1.0889 at the time of writing, well above yesterday’s low of 1.0844. After the last selloff, a minor bounce was expected before extending the downtrend.
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Basically, US retail sales, core retail sales, import prices and industrial production were better than expected in the last trading session. Only the capacity utilization rate was worse than expected.
Today’s eurozone current account was reported at 24.6 billion compared to an expected 30.9 billion from 32.3 billion in the previous reporting period. The US session should bring some volatility as the US will release important economic data.
Jobless claims are expected to come in at 206K above 202K in the previous reporting period, building permits could hold steady at 1.47M, the Philly Fed manufacturing index could jump to -6.6 points from -10.5 points , while the housing starts indicator could fall to 1.43 million.
Technical analysis of EUR/USD price: Downtrend
Technically, the EUR/USD price has extended its downward movement after breaking out of the minor channel to the upside. This was the formation for the continuation.
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The pair also drew an uptrend line, triggering more dips. It failed to break below the weekly S2 of 1.0863, signaling exhausted sellers.
The bias remains bearish as long as it remains below the downtrend line. As you can see on the hourly chart, the rally was stopped by the weekly S1 of 1.0905 before declining again. However, only a new lower low triggers more declines.
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