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EUR/USD: sell-off in play

The EUR/USD pair is trading in the red at 1.0909 at the time of writing and it seems determined to approach and reach new lows. After its strong growth, the price action signaled exhausted buyers and announced a sell-off.

The price climbed as much as 1.0973 after the US ISM Manufacturing PMI, Final Manufacturing PMI, ISM Manufacturing Prices, JOLTS Job Openings, and Factory Orders came in worse than expected at the start of the week.

Today, the Eurozone's economic data came in mixed. On the other hand, the US reported poor economic data, but the USD was oversold and now it has rallied, ignoring the economic figures.

EUR/USD Overbought!


As you can see on the H1 chart, the EUR/USD pair tested and retested the median line (ml) of the ascending pitchfork which represents an upside obstacle. The false breakouts signaled a potential downside movement in the short term.

Now, it has dropped below 1.0929 and below the weekly R1 of 1.0930 immediate downside obstacles.

EUR/USD Outlook!

The aggressive breakdown below 1.0929 was seen as a selling opportunity. The ascending pitchfork's lower median line (lml) and the weekly pivot point of 1.0804 are seen as potential targets.

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