EUR/USD is fighting hard at 1.1741 to rebound but the selling pressure remains high. The pair maintains a bearish bias and it could extend its decline if the Dollar Index resumes its upwards movement.
More positive economic figures reported by the US till the end of the week could help the greenback to capture more ground. Today, the ISM Manufacturing PMI and the Final Manufacturing PMI are expected to increase signaling further expansion, while the Unemployment Claims may drop further to 678K in the last week.
As you already know, the US will publish high-impact data tomorrow. The Non-Farm Payrolls, Unemployment Rate, and the Average Hourly Earnings will definitely shake the markets and not only the EUR/USD.
In line with expectations, data or better could help the USD to increase further versus its rivals, while poor figures could bring a short-term retreat on the dollar.
EUR/USD In The Negative Territory!
EUR/USD moves down within a down channel, so the outlook is bearish as long as it stays within this pattern. It has found temporary support right on the S1 (1.1721) and now it could increase a little to test and retest the immediate resistance levels.
Personally, I'm still expecting the price to reach the first warning line (wl1) of the minor ascending pitchfork despite a minor rebound. Dropping and stabilizing below the S1 and registering a valid breakdown through the warning line (wl1) signal a deeper drop towards 1.16.
Trading Tips!
Sell EUR/USD after a bearish closure under 1.1704 former low or after a valid breakdown through the warning line. 1.16 psychological level may be used as a downside target.
The material has been provided by InstaForex Company - www.instaforex.com