Mon, Mar 01, 2021 @ 07:01 GMT
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EUR/USD More Downside In View

Price dropped significantly after the FOMC and looks poised to start a corrective phase on the short term. EUR/USD is narrowing on the short term, but it could breakout from this range and could make a significant move. Technically, it could drop much deeper on the short term after the retest of some important resistance levels.

The dollar has taken the lead again as the USDX has climbed much higher since yesterday’s US session, the index is trading in the green, but is facing a tough resistance.

USDX is pressuring the 92.49 major horizontal resistance, a valid breakout will validate a further increase and a USD’s dominance. The USD still needs more support from the United States economy, some positive data in the afternoon could give it the needed bullish spark. The Unemployment Claims are expected to jump from 284K to 302K jobs in the previous week, a better report will boost the greenback.

Price is moving sideways, but it could drop much deeper after the retest of the UML and the upper median line (uml) of the minor descending pitchfork. Actually, it could drop after the failure to reach the confluence area formed at the intersection between the UML with the upper median line (uml). EUR/USD failed to close near the mentioned resistance levels, signaling that is expected to drop significantly. The pair could be attracted by the confluence area formed at the intersection between the median line (ml) with the ML of the ascending pitchfork.

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