The EUR/USD pair dropped after reaching 1.0093. It has failed to hit the 1.0100 psychological level signaling exhausted buyers. It was trading at 0.9972 at the time of writing, below parity. As you already know, the fundamentals had an impact yesterday.
As expected, the ECB increased the Main Refinancing Rate to 2.00% and announced further rate hikes. On the other hand, the US Advance GDP came in better than expected while Unemployment Claims, Durable Goods Orders, Core Durable Good Orders, and Advance GDP Price Index came in worse than expected.
Today, the US is to release important economic data as well. The Core PCE Price Index could report a 0.5% growth, Revised UoM Consumer Sentiment could drop from 59.8 points to 59.7 points, pending Home Sales could report at -4.4%, while Personal Income and Personal Spending indicators may register a 0.4%.
EUR/USD In The Sellers’ Territory!
EUR/USD failed to stay above the 1.0000 psychological level and beyond the uptrend line signaling that the swing higher ended and that the sellers could take the lead. Now, it’s trapped between 1.0000 and 0.9957 levels.
Personally, I’ve drawn a minor downtrend line as a dynamic resistance. As long as it stays under this level, the rate could approach and reach new lows.
Dropping and closing below 0.9957 activates more declines and brings new short opportunities. The downtrend line stands as a major downside obstacle and target.
The material has been provided by InstaForex Company – www.instaforex.com