The EUR/USD price turned to the downside, trading at 1.0824 at the time of writing. After its strong rally, a short-term downside correction was due amid profit-taking.

Fundamentally, the US received a helping hand from the Unemployment Claims and Current Account yesterday. Today, the Eurozone and US manufacturing and services figures should be decisive.

The German Flash Services PMI is expected at 51.0 points above 50.9 points in the previous reporting period confirming further contraction, while the German Manufacturing PMI is expected at 47.1 points.

In addition, the Eurozone Flash Manufacturing PMI could be reported at 52.6 points, while Flash Manufacturing PMI should remain in the contraction territory.

Later today, the US data could change the sentiment. Flash Services PMI is expected at 50.3 in March, below 50.6 points in February, while Flash Manufacturing PMI may drop to 47.0 points signaling further contraction. The US Durable Orders and Core Durable Orders could also impact today.

EUR/USD Price Technical Analysis: Corrective Downside

(Click on image to enlarge)

Technically, the EUR/USD pair registered only false breakouts through the R2 (1.0890) and above the upper median line of the ascending pitchfork, confirming exhausted buyers. The median line of the ascending pitchfork represents the first downside target and obstacle. The weekly R1 (1.0780) and the 1.0771 historical level are also seen as support levels.

Testing these levels may result in a new bullish momentum. Only a valid breakdown and making a new lower low activates a larger drop. Technically, the bias remains bullish if it stays above the median line (ml). The 1.0900 psychological level is a major upside target if the rate rallies again. A larger growth should be activated by a new higher high.

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