EURUSD SELL

EURUSD

Despite the release of better-than-expected PMI results, the US dollar declined on Wednesday. However, the situation may change in the coming days, particularly if important US economic data continues to exceed expectations. Therefore, it is crucial to keep track of the fourth-quarter gross domestic product figures, which are scheduled to be published on Thursday.

The fourth-quarter gross domestic product is anticipated to have grown at an annualized rate of 2%, following a 4.9% increase in Q3. Although GDP is a lagging indicator, it still provides critical insights into the economy's overall health. Consequently, traders should pay attention to the report, with a particular focus on household spending, which is the primary driver of growth.

Price formed a bear flag and is now trading under the 200 EMA. If we get a pullback to that broken structural level, we could see a continuation of this downtrend to rest the double bottom and capture liquidity.

Alternative Scenario:
With the strong bearish momentum, it is possible to see a continuation from here. With the hectic movement we've seen in the past few days, it may be safer to wait until the double bottom is retested before looking for a setup.