Taking out this dynamic support and making a new lower low announces more declines. After the last drop, a rebound could be natural. It could test and retest the resistance levels before going down as the bias is bearish.
Fundamentally, the Eurozone Final Core CPI and Final CPI came in line with expectations in the last session. On the other hand, the US Building Permits came in better than expected but worse compared to the previous reporting period, while Housing Starts came in worse than expected in September but better versus 1.27M in August.
The EUR/USD price is trading in the green and it tries really hard to rebound after testing and retesting the warning line (wl1). The false breakdowns show sellers’ exhaustion.
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Now, it challenges the weekly pivot point of 1.0550. The 1.0558 represents a static resistance as well. Still, staying near the warning line (wl1) may trigger a breakdown.
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Today, the Eurozone Current Account was reported higher at 27.7B in August versus 20.9B in July. Later, the US Unemployment Claims is expected at 210K in the last week, Philly Fed Manufacturing Index could be reported at -6.7 points, Existing Home Sales may drop to 3.89M from 4.04M, while the CB Leading Index could announce a 0.4% drop again.
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