The pair is trading in the green today and is about to validate the breakout above a critical dynamic resistance. It is trading at 1.1289, yesterday's drop was only a temporary one as the USDX has rebounded.
EUR/USD should resume the upwards movement if the dollar index drops deeper. Unfortunately, the ISM Non-Manufacturing PMI has failed to save the greenback from the downside.
EUR/USD has managed to close above the upper median line (UML), it has decreased to retest the 23.6% and now is struggling to resume the upside movement. I've said in my previous analysis that a valid breakout above the upper median line (UML) will suggest buying again.
The last false breakdown with great separation below the 1.1200 level has announced a potential valid breakout above the upper median line (UML). EUR/USD should climb towards new highs if the pair closes the day above the upper median line (UML).
- EUR/USD Trading Tips
If you want to go long, maybe you should wait for another higher high, a jump above the 1.1345 will give you a great chance to buy EUR/USD again, the first target is seen at the 1.1422, while the second target could be represented by the R2 (1.1573) level. Also, a consolidation above the 23.6% level and above the UML will suggest a long opportunity as well.
A short opportunity will appear if the current breakout above the upper median line (UML) is invalidated again. Still, a great selling opportunity will be signaled only by a valid breakdown below the 1.1200 level.
