14.07.202219:12 Forex Analysis & Reviews: EUR/USD: more declines possible

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The EUR/USD pair is trading in the red at 0.9988 on the H1 at the time of writing. The price plunged today and reached 0.9952 fresh new low as the Dollar Index rallied towards new highs. As you already know, the USD remains bullish after the US reported a higher-than-expected CPI in June. The Federal Reserve is widely expected to hike interest rates again in the July meeting.

In the last hours, the EUR/USD pair rebounded as the US data came in mixed while the DXY retreated a little. The PPI rose by 1.1% versus 0.8% expected, Core PPI registered a 0.4% growth less versus the 0.5% growth expected, while the Unemployment Claims came in at 244K in the last week versus 235K estimated.

EUR/USD Retests The Sellers!

As you can see on the h1 chart, the pair rebounded but it has failed to stay above the weekly S1 (1.0017) resistance (support turned into resistance) and now is back below parity, below the 1.0000 psychological level.

Stabilizing below this key level may signal more declines. Technically, a false breakout above the 1.0071 resistance announced that the rebound ended and that the EUR/USD pair could drop deeper.

EUR/USD Outlook!

Stabilizign below the 1.0000 key level could signal a downside continuation. A new lower low, dropping and closing below 0.9952 activates a larger drop and could bring new short opportunities with a potential downside target at 0.9900.

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