EUR/USD bearish reversal pattern violated [Video]
|The EUR/USD pair plunged in the last hours as the Dollar Index rallied. It was traded at 1.0554 at the time of writing and it seems determined to approach and reach new lows. Fundamentally, the USD was somehow expected to grow as the US reported better than expected data yesterday. Today, the German Gfk Consumer Climate came in at -27.4K versus -27.5K expected. The USD received a helping hand from the Goods Trade Balance which was reported at -104.3B above 106.0B and from the Prelim Wholesale Inventories which has registered a 2.0% growth versus 2.1% expected.
Later, the US CB Consumer Confidence could really shake the markets. This indicator is seen as a high-impact one and it could drop from 106.4 to 100.0. From the technical point of view, the EUR/USD pair found resistance at 1.0601 again. It has registered only false breakouts through this key static resistance and now it has turned to the downside. As you can see on the H1 chart, the rate escaped from the Rising Wedge pattern signaling that the swing higher ended. Personally, I’ve drawn a descending pitchfork hoping that I’ll catch a new sell-off. As long as it stays under the upper median line, the EUR/USD pair could drop deeper.
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