- The bias is bullish in the short term, as the US dollar is bearish.
- US data should have a big impact today.
- Taking out the median line (ml) activates further growth.
The EUR/USD price rallied in the short term as the US dollar is in a corrective phase. The price is trading at 1.0653, below today’s high of 1.0674. The upside pressure is high even though the Eurozone reports mixed data.
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The Eurozone CPI Flash Estimate rose by 2.9% less compared to the 3.1% growth estimate, while the Core CPI Flash Estimate reported a 4.2% growth as expected. In addition, German Retail Sales registered a 0.8% drop even if the traders expected a 0.5% growth, while German Import Prices rose by 1.6%, beating the 0.4% growth forecasted.
Later, the US data should move the rate. The CB Consumer Confidence is expected to drop from 103.0 to 100.5, Chicago PMI could jump from 44.1 to 45.4, while the Employment Cost Index may report a 1.0% growth.
Furthermore, the HPI could announce a 0.5% growth versus the 0.8% growth in the previous reporting period, while the S&P/CS Composite-20 HPI is expected to report a 1.8% growth. Tomorrow, the FOMC should shake the markets.
The FED is expected to keep the Federal Funds Rate at 5.50%. Still, the FOMC Press Conference and the FOMC Statement represent high-impact events. Also, the ISM Manufacturing PMI and the JOLTS Job Openings should bring high action.
EUR/USD Price Technical Analysis: At Resistance!
Technically, the rate rallied after confirming the ascending pitchfork. Testing the lower median line (LML) signaled an upward movement. Now, it has reached the median line (ml), representing a dynamic resistance, an upside target, and the R1 (1.0660).
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We have a strong supply zone right above these upside obstacles. After such impressive growth, we cannot exclude a sell-off. Still, staying near the median line (ml) may announce an imminent breakout. Jumping and stabilizing above this dynamic resistance activates further growth. The upper median line (UML) is a major upside target.
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