EUR/USD is consolidating right above the broken 1.1111 static resistance. The pair should climb higher if the price stabilizes above this obstacle. The price has decreased a little after the rejection from the 1.1215 -1.1200 resistance area and after the USDX's minor rebound.
It remains to see what will happen on the USDX which is trading at 97.36. A further drop will force EUR/USD to jump above the 1.1200 - 1.1215 area and to reach fresh new highs. The dollar could depreciate if the US data could disappoint tomorrow. The pair could change little ahead of the NFP release as employment growth is expected around 175K. Today, you should focus on the Factory Orders and on the Unemployment Claims release.
Technically, EUR/USD maintains a bullish outlook as long as it is traded above the 1.1111 level. The price tries to recapture the bullish energy ahead of another upside momentum, we may have a sideways movement on the short term.
EUR/USD has registered only a false breakout above the 1.1200 level and above the second warning line (wl2), it has come back down to retest the first warning line (wl1) and now is fighting hard to advance.
The pair could develop a triangle on the short term. That's why it would be better to wait for a confirmation that the price will resume the upside movement because we cannot exclude a potential correction on the short term.
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A valid breakout above the 1.1200 - 1.1215 will confirm a larger increase on the medium to the long term, this will represent a reversal on the EUR/USD. Personally, I believe that the price will take out the static resistance area if it makes a valid breakout above the second warning line (wl2).
I would like to see a consolidation before the price tries to resume the upside movement, a potential range could attract more buyers. You should be aware that another false breakout above the warning line (wl2) could announce a corrective phase. A deeper correction will be confirmed if the price closes below the 1.1094 level.
