EUR/USD Continuation Pattern!

EUR/USD drops right now only because the Dollar Index stays higher. DXY’s further growth could force the pair to resume its drop. The pair has found temporary support and now it’s fighting hard to stay above the weekly pivot point (1.1768).

The US Retail Sales is expected to drop by 0.2% in July versus 0.6% growth in June, while the Core Retail Sales could increase by 0.2% versus 1.3% growth in the previous reporting period. The Industrial Production and the Capacity Utilization Rate will be released as well.

Some poor US data could weaken the greenback and could force the pair to increase. On the other hand, good economic figures could send EUR/USD down.

EUR/USD H4 Technical Analysis!

EUR/USD challenges the weekly pivot point (1.1768). It has printed a minor flag, a down channel.  The previous candle signaled that the downside is over and that EUR/USD could try to increase again.

Still, technically, only a valid upside breakout from this pattern could signal an upwards movement ahead. EUR/USD has found support on the descending pitchfork’s median line (ml).

Technically, a temporary decline was somehow expected after the last rally. It remains to see what will happen as the fundamentals will drive the price.

Conclusion! 

EUR/USD has printed a continuation pattern. Making an upside breakout activates this formation and signals a swing higher.

 

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