EUR/USD Temporary Decline Is Over

EUR/USD has decreased a little in the short term but the bias remains bullish. The price has retested the weekly pivot point and now it looks ready to trade higher. The DXY is under big pressure right now ahead of the US inflation data released tomorrow.

Today, the German Trade Balance increased from 14.0B to 15.9B, exceeding 15.7B expectations. DXY’s further decline could weaken the greenback which should drop versus all its rivals.

EUR/USD H4 Technical Analysis!

EUR/USD is traded at 1.2191 and is pressuring the 1.2193 former high, static resistance. Closing above it could signal strong buyers in the short term. Also, jumping and stabilizing above the 1.2201 level could really announce strong growth.

Its failure to stabilize under the 23.6% retracement level or to approach and reach the weekly S1 (1.2095) signaled that we may have upside momentum. NFP data invalidated a potential larger correction.

Some poor US inflation data reported tomorrow could boost EUR/USD. The volatility could be high around this high-impact event.

Conclusion! 

The pair has decreased only to test and retest the weekly pivot point (1.2174) after its aggressive breakout. A new higher high could activate a potential growth towards the R1.

 

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.