EUR/USD is trading in the red as the USDX is fighting hard to climb higher on the short term. The pair drops when the dollar index increases, I've said in my previous analysis that it remains under pressure and it could drop anytime because the outlook remains bearish.
A USDX's valid breakout above the 100.00 psychological level will confirm a further increase and the EUR/USD sell-off. EUR/USD cannot register a major increase because the eurozone economy could step into recession after the COVID-19 crisis.
EUR/USD has failed to reach the weekly R1 (1.1) level signaling that the bullish momentum could be finished. I've said in other analyses that the outlook remains bearish as long as EUR/USD is traded below the median line (ML) of the orange descending pitchfork.
The failure to come back to retest the median line (ML) could send the price towards the lower median line (LML) quickly. Still, we need a valid breakdown below the weekly Pivot Point (1.0884) level to be certain that this bearish momentum will continue.
EUR/USD could move sideways in the upcoming days between the 1.1 and the 1.0777 levels, only a valid breakout from this range will give us a fresh signal and a clear direction.
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We may have a selling opportunity from below the 1.0777 static support, EUR/USD is somehow expected to drop towards the lower median line (LML) after the failure to reach and retest the median line (ML) and the 1.1 psychological level.
On the other hand, a long opportunity will appear only if the pair makes a valid breakout above the median line (ML) of the orange descending pitchfork. EUR/USD is under pressure and it could resume the downside movement if the Dollar Index moves far above the 100.00 psychological level.
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